Global oil prices are expected to decline on Monday as a dispute between leading exporters of crude Russia and Saudi Arabia raises concerns about another collapse in production restriction talks during a meeting this week.
The move may be stalled as the market responds to US President Donald Trump’s announcement Saturday that he would set tariffs on Saudi and Russian production, potentially speeding up the meeting.
Russian President Vladimir Putin has blamed the collapse in prices on Saudi Arabia on Friday – prompting a response from Riyadh the next day, challenging Putin’s allegations.
OPEC and its allies are working on a global agreement for an unprecedented reduction in oil production, equivalent to about 10% of global supplies, in what they expect to be a global effort, including countries that do not exercise state control over production, such as the US .
However, Trump has not pledged to take the extraordinary step of convincing US companies to cut production.
Per Magnus Nisven, head of analysis at Rystad Energy, said the decline in global demand due to the coronavirus pandemic and global blockages was greater than the proposed cuts from the OPEC + alliance.
Trader Georgi Bozhidarov