NEW YORK/LONDON (Reuters) - Global benchmark oil prices are expected to open lower on Monday as a dispute between top crude exporters Russia and Saudi Arabia raises concerns of another collapse in talks to curb production at a meeting this week.
The move lower may be muted as the market reacts to U.S. President Donald Trump’s statement on Saturday that he will put tariffs on Saudi and Russian production, potentially accelerating a meeting.
“It’s possible that a tariff will be bullish initially,” said Phil Flynn an analyst at Price Futures group in Chicago. “That could offset the bearishness from the headlines that Saudis and Russians aren’t getting along.”
OPEC and its allies postponed an emergency meeting scheduled for Monday, led by Saudi Arabia, where the oil cuts could be agreed upon. A senior Saudi source told Reuters on Sunday that the kingdom would now host the meeting via videoconference on Thursday and the delay was to allow more time to bring other producers on board.
Russian President Vladimir Putin put the blame for the crash in prices on Saudi Arabia on Friday - prompting a response from Riyadh the following day disputing Putin’s assertions.
Crude futures surged for a second day on Friday, with both U.S. and Brent contracts posting their largest weekly percentage gains on record due to hopes that a global deal to cut crude supply worldwide would be struck at talks.
The sharp rebound from weeks of losses came after Trump said Moscow and Riyadh would negotiate to end a price war that slashed prices by more than half last month.
“Given the
