Oil Prices Dip After Producers Delay Talks

Oil benchmarks fell on April 6, following reports over the weekend that a meeting between Opec and other producers on possible supply cuts had been delayed. However, prices rebounded later in the day and are at time of press [12.35 GMT] higher than they were earlier this month, amid optimism that suppliers will strike a deal to rebalance the market.

Brent futures were trading around $33.10/barrel, down 2.93% from the close of trade on April 4, while West Texas Intermediate (WTI) was at $27.45/barrel, down 3.1%.

Media reports claimed last week that officials from Russia, Saudi Arabia and other members of the Opec+ suppliers' pact were planning to hold a meeting via video conference to discuss a response to the Covid-19 pandemic. However, the meeting has now been postponed until April 9, sources told Reuters and other agencies, to give the producers more time to prepare for negotiations.

Prices spiked on April 2 after US president Donald Trump raised hopes that Russia and Saudi Arabia would reduce their supply rather than increasing it. Reports suggest Russia and Saudi Arabia want the US and other non-Opec+ producers to take part in a co-ordinated reduction, however. Norway, which controls the biggest producer Equinor, has even suggested it would consider cutting supply as part of an international agreement.