MarketDeal24.Com – Prices of oil are showing a plunge in Asia on Monday, the first trading day of the week as OPEC+ postponed a meeting till Thursday.
The international benchmark for oil, London-based Brent Oil Futures contracted by 6% to $32.74 by 9:55 PM ET and US WTI Futures also registered a decline. It dropped by 6.1% to $26.61 extending their decline from the previous trading session.
An announcement of the meeting between two oil-producing giants Saudi Arabia and Russia was called on last week to find a solution between them on the issue of a price war. But tensions between the two are running high ever since which triggered a three-day postponement of the meet and fuelled further investor fears.
Commenting on the gravity of the situation, Devon Correll of DD Capital said, “It’s probably going to crater.”
“There were lots of optimism and hopes but the latest round of spat between Saudi Arabia and Russia is making it look as if the problem will not be solved in the near future,” he added.
Saudi Arabia’s minister for oil Khalid A. Al-Falih called for producers such as the United States, Canada, and Norway to support its latest effort.