Crude Oil Sinks on Saudi Hesitance to Curb Production

01-Apr-2016

LONDON—Oil prices tumbled on Friday after reports that Saudi Arabia might not curb its output unless other major producers join the efforts to stem the global oversupply.

Brent crude, the global oil benchmark, fell 2.4% to $39.37 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 2.5% at $37.36 a barrel.


Saudi Arabia’s deputy crown prince, Mohammed bin Salman, said in an interview with Bloomberg that the kingdom will only freeze its oil output if Iran and other major producers agree to curb their output.

“It looks like the freeze deal may be starting to fall apart,” said Dominick Chirichella of the Energy Management Institute. Mr. Chirichella suggested that based on the Saudi comments, it is now possible that an April 17 meeting between OPEC and non-OPEC producers to discuss a freeze deal could be postponed. (by GEORGI KANTCHEV, WSJ)

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