OIL & GAS

Oil prices fall as doubts grow over output cut deal

Oil prices fell sharply Monday after a meeting to discuss output cuts between OPEC and its allies was delayed, dimming hopes of swift action to support coronavirus-ravaged energy markets. US benchmark West Texas Intermediate plunged eight per cent at the open in Asia but clawed back some ground and was trading 5.7 percent lower, at USD 26.72 a barrel.

International benchmark Brent crude was down 4.3 per cent to trade at USD 32.64 per barrel. Oil prices have tumbled to levels not seen for years due to the coronavirus pandemic and a price war between Russia and Saudi Arabia, the kingpin of exporting group OPEC.

Business shutdowns, travel restrictions and other measures put in place to contain the virus outbreak have battered demand.

Prices had bounced back from 18-year lows last week after US President Donald Trump said that Riyadh and Moscow would draw a line under their dispute and agree to major output cuts.

But analysts had been sceptical about a quick resolution, and doubts only grew when the meeting between OPEC and its allies, including Russia, was delayed.

Source
ET Energy World
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