The OPEC+ alliance’s dramatic failure to reach an output deal is most obviously being felt in oil futures, which plunged the most since 2008 in London. A look at the less-conspicuous corners of the market reveal the scale of the impact.
The potential collapse of the group led by Saudi Arabia and Russia is the latest blow to a market that was already dragged down by fears over the economic damage from the spread of the coronavirus. Global benchmark Brent crude, which was already down 24% through March 5, dropped 9.4% on Friday after the talks between members of the alliance collapsed in Vienna.
With Russia refusing to bend to Saudi Arabia’s wish for further output cuts, the producer group’s supply reductions of 2.1 million barrels a day will not continue beyond the end of this month. They will be free