Oil prices plummet as OPEC+ deal falls apart

Oil prices plummeted to $45 per barrel of Brent crude

OPEC, OPEC+, Barkindo, Prince Abdulaziz bin Salman, Alexander novak

The meeting between OPEC and its allies (OPEC+) ended on a sour note as Russia and Saudi Arabia were not able to agree on output cuts. While Saudi Arabia Energy Minister Prince Abdulaziz bin Salman suggested supply cuts as deep as 1.5 million barrels per day, his Russian counterpart Alexander Novak preferred to remain at current output levels until the end of Q2 2020.

As Russia refused to support the cuts, OPEC responded by removing its own limits on production, causing oil prices to spiral 10%, sittina at $45 per barrel of Brent crude, the lowest since 2017, as of writing. The bitter end to the meeting sparked fears of a crash reminiscent of the 2014 crisis, which saw Saudi Arabia and Russia battle for market share with the US.

"From April 1 neither OPEC nor non-OPEC have restrictions," Russian Energy Minister Alexander Novak told reporters after the meeting, Reuters reported.

Prince Abdulaziz would not disclose whether the kingdom would increase production, saying that "I will keep you wondering."

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