Oil closes sharply after cancellation of “OPEC +” meeting

Oil prices plunged into a volatile session after the “OPEC +” group called off its meeting because its main members could not reach an agreement to increase production.

Global benchmark Brent crude contracts closed the trading session as low as $ 2.3, or 3.4%, to settle at $ 74.53 a barrel, after surging over the course of the session at $ 77.84, its highest level since October 2018.

West Texas Intermediate U.S. crude contracts closed at $ 1.79, or 2.4%, at $ 73.37 a barrel, after hitting $ 76.98, the highest level since November 2014.

On Monday, talks between “OPEC +” ministers, which includes producers from the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, collapsed after negotiations failed. managed to end a rare public dispute between Saudi Arabia, OPEC’s largest producer, and the United Arab Emirates.

Initially, oil rose after news of the meeting’s cancellation was announced, but prices fell as traders focused on the possibility that the conflict would prompt some producers to increase production and start exporting more barrels. .

“The market is concerned that the UAE will step in and unilaterally add barrels of crude and other OPEC members will follow suit,” said Bob Younger, director of energy futures at Mizuho .

Source: “Reuters”

Follow RT on