Oil prices are the main topic of the discussion. The virtual meeting scheduled for Monday between OPEC and its allies has been postponed, sources familiar with the matter told CNBC. It happened amid mounting tensions between Saudi Arabia and the Russians. On Thursday, there will be a meeting.
The delay aims to hit crude oil prices next week after a record-setting comeback week. U.S. oil on Thursday grew by 25 percent for its highest record day. In addition, on Friday it added another 12 per cent. With a 32 percent surge, it finished the week.
According to CNBC, it was breaking a 5-week losing streak. In addition, it was recording its best weekly output ever, back to the contract’s 1983 launch.
“It’s probably going to collapse,” said John Kilduff, of Capital Again. “Thursday and Friday there was a lot of hope on oil prices. Russia spat with this new Saudi, it doesn’t seem like it’s going to get together.
The Oil Prices is Still Down
Regarding last week’s surge, West Texas Intermediate oil is still down nearly 40% in the past month on the face of demand devastation from coronavirus outbreaks, and the price war between Saudi Arabia and Russia.
Saudi Arabia and Russia have also pursued U.S. support to balance global oil production. American drillers are still pumping close to record rates as the world hits the edge of its oil-storage capacity.
U.S. oil executives met at the White House with President Friday, and speculation was raised that he might ask them to participate in cuts.
No agreement emerged from the meeting. On the other hand, Trump seemed to represent an industry view that prices would be decided by market forces.
“These are incredible companies and they’ll work it out,” he said after his meeting with the energy CEOs at a White House briefing. “It’s a free market, they are going to work it out.”