WTI Crude is plunging this morning amid chatter that OPEC and allied crude producers are averse to deepening output cuts when they convene next week.
Bloomberg reports that, according to people familiar with the kingdom’s thinking, Saudi Arabia probably will indicate it’s no longer willing to compensate for excessive production by other members of the cartel.
Additionally, the Tass news agency reported that Russia’s oil minister said it’d be better to postpone any new supply caps until April.
“The OPEC accord with Russia could be fraying a bit,” said John Kilduff, a partner at Again Capital.
“It undercuts and undermines everyone’s perception of the commitment.”
Despite Friday’s slump, New York-traded futures were on track for the biggest monthly advance since June amid optimism the the U.S. and China are closing in on a trade accord.