Oil holds below $47 as OPEC’s planned cut awaits Russian backing By Bloomberg | March 5, 2020, 6:06 a.m. | Share:
- Oil held below $47 a barrel in New York as OPEC agreed on a sharp production cut that’s still dependent on approval from Russia.Crude initially rose as ministers meeting in Vienna backed a 1.5 million-barrel-a-day reduction, but erased gains as it became clear that the plan is contingent on Russia’s support. Energy Minister Alexander Novak on Wednesday had refused to endorse such a move, and won’t return to negotiations until Friday.“It is a big cut and a surprise they could agree on that,” said Jens Pedersen, senior analyst at Danske Bank. “But let’s see the country-split and how large a share Saudi Arabia takes.”West Texas Intermediate futures for April delivery rose one cent to $46.79 a barrel on the New York Mercantile Exchange as of 11:46 a.m. London time. Brent futures for May were little changed at $51.10 a barrel on the ICE Futures Europe exchange.The 1.5 million-barrel-a-day cut would include Russia and other non-OPEC allies, delegates said, asking not to be named because the talks were private. But Novak left Vienna on Wednesday without backing such a proposal, instead preferring to maintain current output levels.Novak and ministers from other non-OPEC allies will be in the Austrian capital on Friday to discuss an agreement.Nations across the globe have been forced to inject cash into slowing economies as they struggle to contain the rapidly spreading coronavirus outbreak, with Goldman Sachs Group Inc. among banks and consultants warning of a significant hit to oil consumption this year.© 2020 Bloomberg L.P.
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Mar 05, 2020
Oil holds below $47 as OPEC’s planned cut awaits Russian backing
By Bloomberg |March 5, 2020, 6:06 a.m. |Share:
Oil held below $47 a barrel
Oil holds below $47 as OPEC’s planned cut awaits Russian backing By Bloomberg |March 5, 2020, 6:06 a.m. |Share: Oil held below $47 a barrel