Can the blame game end?

Can the blame game end?

The future of Oil prices is in the hands of OPEC+ members. The world holds its breath for Thursday's meeting.

Oil prices dropped significantly as the partnership between Saudi Arabia and Russia ended at the last OPEC+ meeting in March.

On top of that, the pandemic made the world demand drop dramatically. The meeting that was supposed to take place on Monday was rescheduled for April 9, invoking technical difficulties. Nonetheless, Saudi Arabia and Russia attacked each other over the past days. Shortly after the two countries exchanged "pleasantries," both Brent Oil and Crude Oil fell almost 12%.

The potential production cut mentioned by Russia, Saudi Arabia, and the U.S. is said to be between 10 to 15 million barrels per day. Analysts think that this won't be enough to put Oil on the right track. Some go as high as 20 million barrels per day, or even more. Anything less would disappoint the market.

Sources familiar with the matter believe that even the U.S. might join the cuts, with 1 million barrels-a-day.

This meeting came as a surprise from the Arab side, as until last week, they wanted to produce over 12 million barrels per day.

Warren Patterson, head of commodities strategy at ING, said that it is "clear that the tensions between the Saudis and Russians are still high, and both are playing a blame game over who was behind the failure of the OPEC+ meeting in early March."

On the other side, Monday, the oil prices went up: Oil gained 4.1% to $27.15 per barrel, and Brent Oil rose 2.43% to $34.11 per barrel.


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Sources: Aljazeera.com, reuters.com, investing.com, ft.com

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Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

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