Oil dropped toward the lowest level since 2003 as prospects for a deal between OPEC and Texas to limit production appeared to fade, while a U.S. coronavirus rescue package ran into political delays.
Futures in London fell around 4% to near $26 a barrel, while West Texas Intermediate edged higher after the April contract expired Friday. Texas Railroad Commissioner Ryan Sitton landed a rare invitation to attend OPEC’s June meeting on Friday, but just hours later hopes for an agreement began to unravel as his call to curb output was criticized by fellow regulators and drillers.
Brent for May settlement lost 3.7% to $25.98 a barrel on the ICE Futures Europe Exchange as of 11:01 a.m. in Singapore after dropping to as low as $24.68 earlier. That’s less than its close of $24.88 a barrel on Wednesday, which was the lowest since May 12, 2003 when it settled at $24.63
WTI for May delivery rose 0.5% to $22.75 a barrel on the New York Mercantile Exchange after falling to as low as $20.80 earlier. The April contract plummeted 29% last week, the most since 1991.
Source : Bloomberg