Oil plummeted to the lowest in more than two years after high-stakes negotiations between OPEC and its Russian ally collapsed without a plan to arrest free-falling prices with supply cuts.
Futures fell almost 8% in New York and London on Friday. Ministers from the so-called OPEC+ group failed to resolve differences over whether to impose additional production curbs. Deep divisions among the world’s top crude exporters come amid signals that demand is cratering as the Covid-19 outbreak spreads.
“There’s going to be pain for everyone in oil markets,” said Josh Graves, senior market strategist at RJ O’Brien & Associates. “The collapse of this deal means we’re going to see oil test $40 a barrel.”
West Texas Intermediate futures for April delivery fell $2.99 to $42.91 a barrel at 10:31 a.m. on the New York Mercantile Exchange.
Brent for May settlement dropped $3.35 to $46.64 on the ICE Futures Europe Exchange.
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