Crude oil slipped after OPEC and Russia postponed a meeting that could end a price war and reduce a supply glut that has driven oil futures to their lowest in decades.
The meeting had been set for Monday, but is now scheduled for Thursday, an OPEC source told CNN Business.
Saudi Arabia and Russia have been locked in an price war since early March when they abandoned production caps, flooding the oil market with cheap crude, just as demand cratered because of the coronavirus pandemic. Crude prices fell to 18-year lows, crushing American oil companies and energy stocks.
US crude fell as much as 11% to $25.28 a barrel overnight before paring losses after the head of Russia's sovereign wealth fund said his government was close "very, very close" to reaching a deal with Saudi Arabia. Prices were last down 4% to trade around $27.22 a barrel. Brent crude — the global benchmark — fell 3.4% to $32.96 a barrel.
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," said Kirill Dmitriev, CEO of the Russian Direct Investment Fund, told CNBC.