• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 12 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 15 mins Tesla Begins Construction Of World’s Largest Energy Storage Facility
  • 19 hours Trump Hands Putin Major Geopolitical Victory
  • 4 hours America Could Go Fully Electric Right Now
  • 2 hours Will any journalist have the balls to ask Kamala if she supports Wall Street "Carried Interest" Tax Loophole
  • 13 hours Those Nasty White People and Camping Racism
  • 2 hours In 1,267 days, Trump has made 20,055 false or misleading claims
  • 8 hours COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 3 hours .
  • 1 hour Brent above $45. Holding breath for $50??
  • 4 hours Buying votes is cool now.
  • 15 hours The Truth about Chinese and Indian Engineering
  • 1 day Oil Tanker Runs Aground in Mauritius - Oil Spill
  • 2 days China wields coronavirus to nationalize American-owned carmaker
  • 2 days Open letter from Politico about US-russian relations
  • 2 hours The World is Facing a Solar Panel Waste Problem
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Nosedives As OPEC Fails To Strike A Deal

Oil prices tumbled on Friday as OPEC and its Russia-led non-OPEC allies failed to agree on deeper cuts, Bloomberg and Reuters report.

OPEC failed to agree on a deal, two OPEC sources told Reuters, while Bloomberg’s Jessica Summers tweeted that “OPEC talks with allies end without a deal.” 

The OPEC Secretariat moments later Tweeted that the formal OPEC meeting had just begun, confusing markets as to what had actually transpired.

At 9:20 a.m. EST on Friday, both WTI Crude and Brent Crude prices were tumbling by more than 7 percent, after the coronavirus outbreak unraveled the OPEC+ coalition that had tried to support and stabilize oil prices since the beginning of 2017.

On Friday, Russia continued to refuse to back any deeper cuts from the OPEC+ coalition, as proposed by OPEC on Thursday.

Yesterday, OPEC ministers met and recommended that the OPEC+ partners extend the current cuts through the end of 2020 and deepen those cuts by 1.5 million bpd in Q2 in response to the slump in demand due to the coronavirus outbreak.  

Later on Thursday, OPEC ministers met again and decided that the 1.5 million bpd additional cut should not be only for Q2 but for the rest of 2020 as well.

Russia has taken this arm twisting not too well, and as its Energy Minister Alexander Novak returned to Vienna on Friday, he began bilateral consultations with several non-OPEC partners and with Saudi Energy Minister Prince Abdulaziz bin Salman.  

The bilateral talks extended in the afternoon, and the OPEC+ meeting which was scheduled to begin at 11 a.m. Vienna time was delayed with hours.

Now it looks like the two most powerful producers at the table, Saudi Arabia for OPEC and Russia for non-OPEC, didn’t want to budge from their respective positions. Russia refused to cut deeper, while OPEC was signaling that it won’t cut without Russia on board.

The ‘no-deal’ outcome of the meeting was the least likely scenario the market and analysts had expected, and oil prices tumbled to their lowest levels since mid-2017 as reports emerged that there will not be a deal this time around.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on March 06 2020 said:
    The proposed oil cuts by OPEC will be futile with no positive impact on oil prices as long as the coronavirus outbreak is raging. It will only lead to a loss of OPEC share in the global oil market. This is the view I have been repeating frequently of recent times. It also happens to be the view of Russia.

    However, if Saudi-led OPEC is so keen on effecting deeper production cuts, then they should aim at cutting their production by 5.0 million barrels a day (mbd) to totally eliminate the glut in the market estimated at 5.0 mbd. This is impossible to do since it will bankrupt the economies of Saudi Arabia and other OPEC members.

    Still, there is faint light at the end of the tunnel that President Putin may very reluctantly give the nod to new OPEC cuts with a symbolic cut of its own just for the sake of maintaining good relations and cooperation with Saudi-led OPEC.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News