Oil dives more than 3% after Russia rejects steeper OPEC+ cut

Oil dives more than 3% after Russia rejects steeper OPEC+ cut

Oil prices slid more than 3% on Friday after Reuters reported that Russia will not agree to steeper oil output cuts by OPEC and its allies to support prices in the face of a slump in oil demand because of the global coronavirus outbreak, Trend reports.

Brent and WTI crude futures tumbled by nearly $3 a barrel after the report.

By 1057 GMT Brent crude was down $1.74, or 3.4%, at $48.25 a barrel. U.S. West Texas Intermediate (WTI) was down $1.56, or 3.4%, at $44.34.

A Russian high-level source told Reuters on Friday that Moscow would not back an OPEC call for extra reductions in oil output and would agree only to an extension of existing cuts by OPEC and its allies, a group known as OPEC+.

The Organization of the Petroleum Exporting Countries (OPEC) held talks with its allies on Friday after the group told Russia and others that it favoured an additional 1.5 million barrels per day (bpd) of cuts until the end of 2020.

Non-OPEC states were expected to contribute 500,000 bpd to the overall extra cut, OPEC ministers said. The new deal would mean OPEC+ production curbs amounting to a total of 3.6 million bpd, or about 3.6% of global supply.

Some analysts had expected Moscow to endorse the agreement.

Global stock markets tumbled on Friday as disruptions to business from the spreading coronavirus epidemic worsened. European shares opened sharply lower, with travel stocks bearing the brunt.

However, after marking its worst weekly performance since the 2008 financial crisis a week ago, the MSCI All-Country World Index was up 1.7% on the week.

Even with the deeper cut, Goldman Sachs said the OPEC+ deal would not have prevented a global oil market surplus in the second quarter. The bank maintained its Brent price forecast at $45 a barrel in April.

“Ultimately a rebound in demand, not supply cuts, will be the necessary catalyst for a sustainable rebound in prices,” the bank said.

Meanwhile, ANZ said that global oil consumption could fall by 1.6 million bpd in the first half of 2020 and contract by about 300,000 bpd for the full year.

“Growth may return in H2 (second half of 2020) but is unlikely to be enough to offset the losses,” the bank said.

Subscribe to Trend in Google News! Subscribe
US commits to helping Saudi Arabia, Gulf partners defend against threats from Yemen
US commits to helping Saudi Arabia, Gulf partners defend against threats from Yemen
NYPD officer killed, another seriously wounded in shooting
NYPD officer killed, another seriously wounded in shooting
Saudi-led coalition denies targeting detention centre in Yemen's Saada
Saudi-led coalition denies targeting detention centre in Yemen's Saada
Loading Bars
Latest
Central Bank of Azerbaijan fully meets demand at foreign exchange auction
US commits to helping Saudi Arabia, Gulf partners defend against threats from Yemen
NYPD officer killed, another seriously wounded in shooting
Poland, Georgia to hold Joint Intergovernmental Commission meeting – ministry
Saudi-led coalition denies targeting detention centre in Yemen's Saada
Arnold Schwarzenegger involved in car accident
Germany's minimum wage hike will not cost jobs - labour minister
Canadian tourist killed, 2 others wounded in Mexico resort shooting
Iran says gas flows to Turkey resume after being cut due to technical fault
Student shot at Maryland school, suspect in custody
France: Former aides to ex-president Nicolas Sarkozy jailed for opinion poll fraud
WHO recommends reduced dose Pfizer COVID vaccine for under 12s
Islamic State jailbreak in Syria, army barracks attack in Iraq leave at least 39 dead
U.N. chief condemns deadly Saudi-led coalition strike in Yemen
Amirabdollahian: new chapter in Iran-Russia ties to unfold
Trade turnover between Uzbekistan and Azerbaijan increases
Dozens killed in Saudi-led coalition air raid on Yemen prison
Price of fuel and lubricants in Kyrgyzstan increased by 70% over past year
Airbus cancels Qatar Airways order in escalating dispute
Turkey wraps up in-person semester with success against pandemic
Azerbaijan may toughen punishment for domestic violence
Azerbaijani Xalq Bank's profits increase
Azerbaijan names most profitable non-oil fields in terms of tax revenue growth
Kazakh oil and gas company to purchase variable speed drives
Кazakh Electricity Grid Operating Company opens tender to buy hydraulic press
Turkmenistan-Belarus trade turnover fell in 11M2021
Crime rate in Azerbaijani Armed Forces decreases - military prosecutor general
Size of consumer market in Azerbaijan increases - minister
Price indexes of financial, trade sectors at Uzbek stock exchange rise
Government focuses on subsidizing production rather than import – Azerbaijani Cabinet of Ministers
Azerbaijan is one of countries with best conditions for training - Australian gymnast
Azerbaijan's parliament discusses lifting of visa regime with Serbia
European Azerbaijan School hosts return of World Scholar's Cup to Baku (PHOTO)
Uzbekistan and Oman eye joint projects in transport sector
Schlumberger's profit jumps as higher oil prices spur drilling demand
Kazakhstan to strictly fulfill all investment obligations - President Tokayev
Global inflation crisis intensifying: what will Azerbaijan do?
Kazakhstan needs new tax policy - president
Georgia’s main oil exporters disclosed
Uzbekistan discloses level of assimilation of investment in fixed capital
Kazakhstan’s banking sector sees increase in total assets
Uzbekistan sees increase in volume of foreign trade turnover for 2021
Turkmenistan-Uzbekistan trade turnover increased in 2021
Iran eyes establishment of joint bank with China
Azerbaijan continues searching for servicemen gone missing during Karabakh war
UAE bourses end higher on financial, telecom boost
Kazakhstan's president orders to audit all local deposits
Turkmenhimiya opens tender to purchase chemical products
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,068 more COVID-19 cases, 551 recoveries
German health min sees possible tripling of COVID infections by mid-Feb
Kazakh government must develop new modern approaches to public-private partnership - president
Kazakhstan unveils its TOP-3 trade partners for 11M2021
Azerbaijan launches working group to prepare measures to combat inflation
Israel's defence chief isolates at home after positive COVID test
Former ambassador sentenced to 10 years in prison in Azerbaijan
Azerbaijani holding training session for reservists (PHOTO/VIDEO)
Rising influence of limited elite groups in Kazakhstan becomes serious security threat - Tokayev
Turkmen factory discloses construction materials production data
Azerbaijan enters new stage of strategic development - official
Georgia’s fuel prices remain relatively low
Kazakhstan to create secondary market for distressed asset purchase and sale
SOCAR Turkey eyes capacity expansion for STAR Refinery
Russia reports 49,513 daily COVID-19 cases, a new high since start of pandemic
SOCAR’s STAR Refinery expands its list of oil grades
Kazakhstan needs tough policy to demonopolize economy - president
Iran reduces electricity subsides for high consuming users
Azerbaijan unveils value added growth in non-oil industry in 2021
Georgia names main trading partners by export destinations in 2021
Azerbaijan discloses state budget expenditure growth in 2021
Turkmenistan-Turkey trade volume increased in 11M2021
Goals of Advisor to French President's Cabinet, EU Special Representative for S.Caucasus's visit to Azerbaijan named (Exclusive)
Azerbaijan-Armenia border demarcation is priority - Russian MFA
Greenhouse sector in Georgia may soon get needed backup from USAID, UNDP, ADB
Russia is consistently making efforts to resolve situation on Azerbaijan-Armenia border - MFA
Nar supports the biggest platform of Azerbaijani audiobook library
Kazakh National Bank to ensure balance of foreign exchange market until full restoration of confidence in tenge
SOCAR Turkey updates on Merkury project
Turkish officials visit Azerbaijan’s pavilion at Dubai Expo 2020 (PHOTO)
Intel plans $20 bln chip manufacturing site in Ohio - sources
Uzbek Central Bank shares data on volume of cash in circulation
Turkmen Health Ministry opens tender to purchase medical oxygen cylinders
Ukraine discloses volume of Azerbaijani investments in economy
Number of employment contracts increases in Azerbaijan - minister
Georgia sees increase in producer price index
India to help Sri Lanka with USD 2.4 billion to overcome financial crisis: Report
‘Mauritius prime example of India’s approach to development partnership’, says PM Modi
World Bank to launch co-op program with Uzbekistan for 2022-2026
Azerbaijan considers extending term of suspension of inspections in field of business
Turkmenistan is primary supplier of jet fuel to Georgia - Union of Oil Product Importers
Turkmenistan intends to supply electricity to third countries via Uzbekistan and Iran
SOCAR reveals volume of gas exports to Europe
Azerbaijan commissions new military facilities in liberated Kalbajar district (PHOTO/VIDEO)
Oil production up at Azerbaijan’s Bahar-Gum Deniz
Kazakhstan failed to create diversified economy – President Tokayev
Uzbekistan eyes implementing projects with Japan in leather and footwear industry
Bahar Energy shares data on well fund in Azerbaijan
Kazakh president calls on local business circles to jointly build new economic policy
Number of active oil wells in Azerbaijan’s Bahar-Gum Deniz block down
Georgia publishes COVID-19 data for January 21
All news