LONDON – Global Oil Prices Fall After Output Cutting Deal. Global oil prices dropped in volatile trade on Tuesday. This comes as traders shrugged off news that crude producers agreed to cut production over the weekend.
According to details, US President Donald Trump indicated on Monday that producers were considering cutting 20 million barrels per day. At about 1100 GMT, European benchmark London Brent North Sea oil for delivery in June dipped 0.4 percent per barrel. US benchmark West Texas Intermediate crude for May delivery slid 1.7 percent to $22.04.
OPEC producers dominated by Saudi Arabia and allies led by Russia thrashed out a compromise deal on Sunday. It is to cut production by nearly 10 million barrels per day from May. Producers had hoped to address the market’s recent collapse, fuelled by the coronavirus sapping global energy demand and a Saudi-Russian price war.
The producers’ agreement was to boost prices after months of heavy falls as nations experience lockdown. Shutting factories, grounding planes and ridding roads of cars.
A Saudi-Russian price war has compounded the crisis, with both countries ramping up production as they bid to hold on to market share and undercut US shale producers extracting oil from rock.
Global Oil Prices Fall After Output Cutting Deal.