OPEC-Russia differences bring oil market back into turmoil

Falling crude oil prices mark again the volatile scenario in which the oil industry operates. Brent's and West Texas' barrels traded down 3% on Monday after it was announced that the emergency meeting between the Organization of Petroleum Exporting Countries (OPEC) and Russia would be postponed until Thursday, with the aim of agreeing on measures to control the price collapse.

The meeting raised expectations that resulted in increases, which added to three days of increases led to a 50% rise in Brent from $22 to $34. Although it was based on minimum prices after the debacle in March, where the historical fall in consumption due to the coronavirus pandemic was combined with the disagreement between the cartel and Russia.

Now the oil market is living in an impasse, waiting for the telematic summit on Thursday to agree on production reductions in the face of excess supply, high stocks and a demand that has not recovered. Previous negotiations pointed to a joint cut of some 10 million barrels a day, in the region of 10% of world production.

On the other side of the Atlantic, US President Donald Trump is also working to help companies that are vital to the country. And on Friday he met with executives from Exxon Mobil, Chevron Corp, Occidental Petroleum and Continental Resources in an attempt to also save the companies that mine hydrocarbons through the 'share' system, which need a certain price level to be profitable. Although in the above-mentioned meeting, the big oil companies refused to accept production quotas, while Trump has raised the option of approving tariffs on oil imports into the US.