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  • Crude oil fell sharply after OPEC+ emergency meeting got postponed.
  • Saudi Arabia and Russia are reportedly close to reaching an output cut deal.

Crude oil prices came under strong selling pressure after developments over the weekend revealed that the OPEC+ emergency meeting got postponed to Thursday to give more time to sides to negotiate.

Eyes on new OPEC+ output cut deal

The barrel of West Texas Intermediate (WTI) erased more than 10% from Friday’s closing level and touched a daily low of $25.27 in the early trading hours of the Asian session but has been recovering its losses since. As of writing, the WTI was trading at $27.63, still down around 4% on a daily basis. 

Citing a top Russian oil negotiator, Reuters on Monday reported that Saudi Arabia and Russia were close to a deal on oil production reductions and helped crude oil extend its rebound. “I think the whole market understands that this deal is important and it will bring lots of stability, so much important stability to the market, and we are very close,” Kirill Dmitriev, head of Russia’s sovereign wealth fund, told CNBC.

Moreover, Iraq’s oil minister said that he was optimistic about reaching a new supply cut deal after talking to his OPEC+ counterparts over the weekend.

Technical levels to watch for