Oil prices slide after Saudi Arabia-Russia delay talks
Oil prices fell slightly on Monday after talks between Saudi Arabia and Russia to reduce supply were delayed.
Oil prices fell on Monday after talks between Saudi Arabia and Russia to reduce supply amid weakening demand due to Covid-19 were delayed.
Brent crude is down 1.9% to $33.46 a barrel, while the US West Texas Intermediate is trading 3.71% lower to $27.29 a barrel as of 15:11 (GMT) on Monday.
‘Perhaps it is best that the meeting was delayed for producers to cement a minimum of common ground before the actual discussions take place on Thursday,’ BNP Paribas analyst Harry Tchilinguirian told Reuters.
Looking to trade oil and other commodities? Open a live or demo account with IG today.
OPEC+ to discuss cutting supply
The Organisation of the Petroleum Exporting Countries and its allies, also known as OPEC+, are now scheduled to meet on Thursday to discuss cutting production.
OPEC+ will meet to discuss cutting oil production by about 10% of world supply, which equates to a reduction of around 10 million barrels of oil per day (bpd) in a global effort to support the market amid the economic fallout from Covid-19.
You can go long or short oil and other assets with IG using derivatives like CFDs.
Brent crude remains above $30 support level
Despite the minor setback, Brent crude managed to stay above the $30 benchmark on Monday, which it managed to climb above late last week as tensions between Saudi Arabia and Russia showed signs of deescalating.
But even if OPEC+ can agree to a 10 million bpd cut in oil production, it is unlikely to be able to offset the weakening demand, especially when forecasts predict a 23 million bpd supply overhang in April.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Trade on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.