The risks of a possible disruption of the OPEC+ meeting, scheduled for April 9, remain high. Last weekend, Russia and Saudi Arabia exchanged "taunts" at each other about the collapse of the oil market, and the United States, which actively joined in the discussion of the current situation, did not put forward any concrete proposals.
At the end of last week, oil prices showed significant growth during two consecutive trading sessions on reports that the alliance will discuss the possibility of reducing oil production by 10 million barrels per day in total. On Monday, April 6, prices started to decline after information on the postponement of the OPEC+ meeting from April 6 to April 9.
The OPEC + meeting on Monday lost its meaning, as the United States so far does not want to participate in the deal. Last weekend, Russia and Saudi Arabia exchanged accusations against each other over the collapse of the oil market. However, the problem is not in the positions of traditional manufacturers, but in the intentions of the United States, the expert believes. At the end of last week, Trump spoke about the readiness of Russia and Saudi Arabia to reduce production by 10 million barrels, but Washington, for its part, has not put forward any proposals.
It is still very early to take the decline in production for granted, the probability of failure of the negotiations is still quite high. If the United States is not ready to participate in the deal, the market will follow the path of a longer period of low prices that shale companies will ruin. By the way, this process has already begun.