Monday, 06 Apr 2020 07:14 AM MYTNEW YORK, April 6 — Global benchmark oil prices traded as much as US$3 a barrel lower as the market opened for Monday’s trading session, reflecting fears of oversupply after Saudi Arabia and Russia postponed to Thursday a meeting about a potential pact to cut production.
Over the weekend, Saudi Arabia sent a signal that a production cut deal may be ahead, potentially muting the price decline. US President Donald Trump said he will put pressure on Saudi Arabia and its allies for such a deal. Trump said on Saturday that he will put tariffs on Saudi and Russian production, potentially accelerating an output cutback.
Opec and its allies are working on a global agreement for an unprecedented oil production cut equivalent to around 10 per cent of worldwide supply in what they expect to be a global effort including countries that do not exert state control over output, such as the United States.