Oil prices slumped Friday and eyed a sizable drop for the week, pressured by news that Saudi Arabia doesn’t back holding an emergency OPEC meeting aimed at stopping crude’s slide.
Crude futures for delivery in October slid by 79 cents, or 1.7%, to $45.13 a barrel, putting the U.S. oil benchmark on pace for a weekly fall of 2%. Brent crude retreated by 76 cents, or 1.6%, to $48.13 a barrel, leaving it down 3% for the week.
Saudi leaders think a meeting of the Organization of the Petroleum Exporting Countries wouldn’t result in concrete action toward defending oil prices, said a Reuters report citing unnamed sources. Venezuela has pushed for such a meeting. News of Saudi Arabia’s stance comes after Arab oil ministers discussed Venezuela’s suggestions in Qatar, the Reuters report said.
Traders also await a monthly report on the oil market from the International Energy Agency that’s expected later Friday. On Thursday, the U.S. crude benchmark rallied 4% as expectations for further declines in U.S. production helped offset a bigger-than-expected weekly increase in domestic crude supplies.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- Europe open – Optimism, oil, gold, Bitcoin - 04/06/2020
- OANDA Market Insights – Episode 108 (Podcast) - 04/03/2020
- European open – US jobs, OPEC+++, gold, bitcoin - 04/03/2020