Oil price drops amidst Russia, Saudi Arabia postponed meeting

Oil prices dropped on Monday by 3.2% after the Saudis and the Russians postponed a meeting to discuss potential oil production cuts.

As of 9.15 am Nigerian time, Brent crude was down by 3.2%, trading at $33.01 per barrel. U.S. crude was also down by 3%, trading at $27.50 per barrel.

Any output cut deal, at this time, could go a long way in helping to reduce the oil glut that has been witnessed since the Coronavirus pandemic weakened global demands.

Brent Crude had dropped by more than $3 when the Asian trading session opened early Monday morning. However, it regained some grounds based on the optimism that OPEC and Russia were about to reach an output cut deal. Unfortunately, the meeting never held.

OPEC and its allies, a group also known as OPEC+, is now expected to meet on the 9th of April 2020 to discuss oil production cuts.

OPEC+ is currently working on a deal to reduce crude oil production by about 10% of global oil supply, or 10 million barrels per day. OPEC members believe this will be a significant global effort.