Oil sheds over 8% after OPEC+ meeting delayed

Oil prices slumped more than 8% on Monday, to pullback from several week highs, on profit-taking and renewed worries over the output cut talks between Saudi Arabia and Russia, after OPEC-Plus emergency meeting that was scheduled for today was delayed, and today's losses are ebbed after US President Donald Trump threatened to impose tariffs on oil imports, in addition to a slowdown in US shale oil drilling activities.

The US crude lost 8.1% to $26.46 a barrel, after opening at $28.79, and hit a day high of $28.79, and Brent shed 9.2% to $31.68 , after it opened at $34.89, with a high of $34.22.

The US crude rose 16.50% on Friday, its third daily gain, and hit a 2-week high of $29.11, and Brent rose 17.25%, its second daily gain and a 3-week high of $36.16.

During the past week, the US crude gained 32%, and Brent Oil gained 39%, their first weekly gain in a month and a half, and the all-time largest.

Oil's all-time largest weekly gain came on prospects for a deeper output cut agreement in the next emergency meeting of the OPEC-Plus coalition, after the US intervened to persuade Saudi Arabia and Russia to balance the falling prices.

However, OPEC Plus announced postponing the meeting, which renewed worries over the output cut talks between Saudi Arabia and Russia.

The global coalition ended its last meeting of March without agreement, after Moscow rejected OPEC's proposal to deepen the output cut by an additional 1.5 million bpd, leading to a price war between Saudi Arabia and Russia.

While the next meeting was scheduled for later today via a closed conference call, after President Donald Trump said yesterday that he had spoke to Saudi Crown Prince Muhammad bin Salman and discussed ways to balance the global energy market, adding that he expects Saudi Arabia and Russia to agree on cutting back about 10 to 15 million barrels per day.

The CEO of the Russian National Wealth Fund's told CNBC today that Saudi Arabia and Russia are very close to production cut agreement.

While Reuters quoted a Saudi source that Riyadh has postponed the announcement of crude export prices, to wait for the outcome of the OPEC-Plus meeting regarding possible output cuts."

US President Donald Trump has criticized the OPEC-Plus monopoly over the oil industry, and said he will impose tariffs on crude imports if  Russia and Saudi Arabia failed to reach an agreement.

Baker Hughes revealed on Friday that the US oil drilling rigs count fell by 62 rigs during the past week, in the third straight weekly drop, and the largest since March 2015, to reach a total of 562 rig, the lowest since the week ending Jan. 20, 2017, indicating a suspension in the US production activity due to the falling prices.