Trump: ‘There’s an overabundance of oil right now’
President Trump discusses the meeting he held with oil executives and says there’s a massive supply of the resource currently which is driving prices way down.
Oil prices pulled back following a week of historic gains after OPEC and its allies postponed a virtual meeting to discuss production cuts.
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Saudi Arabia and Russia have delayed their meeting that was originally scheduled for Monday until April 9 amid a dispute over which side was to blame for oil plunging last month to an 18-year low, Reuters reported, citing sources.
CORONAVIRUS CATAPULTING US INTO DEEPEST RECESSION SINCE WW2
West Texas Intermediate, the U.S. benchmark, traded lower by 4.3 percent at $27.12. Brent crude oil, the international benchmark, fell 3.55 percent to $32.90 per barrel.
WTI posted its largest weekly gains on record last week, up 32 percent, after President Trump said he expected Saudi Arabia and Russia to cut production by 10 million barrels per day. The alliance is said to be willing to lower production, but wants U.S. shale producers to also join in the cuts.
The U.S. benchmark has plunged by as much as 57 percent from its Jan. 6 high after Russia refused to join Saudi Arabia and its allies in deepening production cuts, causing the latter to ramp up production and lower prices.
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The dispute laid siege to a market that was already seeing significant demand destruction due to the COVD-19 pandemic.
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