WASHINGTON (DTN) -- Following an explosive two-day rally through Friday, oil futures on New York Mercantile Exchange and Brent crude on Intercontinental Exchange ended lower amid inside trade Monday, although front-month West Texas Intermediate shed over 7% in value as investors await an emergency policy meeting between members of the Organization of the Petroleum Exporting Countries and Russia-led partners scheduled for Thursday.
Initially scheduled for Monday, the meeting was delayed by Saudi Arabia and Russia after a meeting between U.S. President Donald Trump and several U.S. oil executives on Friday ended without a statement on coordinating production cuts, while the Trump administration threatened to slap levies on crude imports from Saudi Arabia and Russia.
Delegates from the 23-nation OPEC+ alliance called for opening the supply pact to Norway, the United Kingdom, Canada and the United States, as producers seek a coordinated global response in drawing down a heavily oversupplied market. Saudi Arabia and Russia both warned Monday if there is no deal, oil storage facilities around the world will fill up in a matter of weeks.
"Oil tankers are already being used not to ship oil but as floating canisters," said a spokesperson for Russian President Vladimir Putin on Monday.
A spokesman for Norway's energy ministry indicated today its officials would be willing to attend if there is a broad attendance from other countries.
Some reports suggest oil producers might make the implementation of their production cuts contingent on signals that other G-20 nations are willing to make output curbs. The G-20 is considering holding an emergency energy summit on Friday (4/10), according to unconfirmed reports.
Saudi Arabia on Sunday delayed the release of its Official Selling Price for May exports until after the virtual gathering takes place. The delay suggests Riyadh would back an agreement if reached Thursday. Talk continues OPEC+ is targeting a 10 million barrel per day (bpd) cut, equivalent to 10% of global supply, however oil inventories would still rise 15 million bpd in the second quarter said International Energy Agency's Chief Fatih Birol because of lost demand amid COVID-19. Goldman Sachs on Monday said oil demand this week would fall as much as 26 million bpd, more than a quarter of worldwide consumption.
At settlement, May WTI futures fell $2.26 to $26.08 per barrel (bbl) and ICE Brent June contract declined $1.06 to close down at $33.05 bbl. NYMEX May RBOB contract moved up 1 cent to $0.7016 gallon. NYMEX ULSD May contract settled down 2.49 cents at $1.0457 gallon.
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