Oil prices decline $3 a barrel as market remains uncertain on supply outlook

FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant/File Photo

NEW YORK (Reuters) – Global benchmark oil prices traded $3 a barrel lower as the market opened for Monday’s trading session, reflecting fears of oversupply after Saudi Arabia and Russia postponed to Thursday a meeting about a potential pact to cut production.

The price decline may be muted because Saudi Arabia sent a signal that a production cut deal may be ahead, and the United States has said it will put pressure on Saudi Arabia and its allies for such a deal.

“I don’t know that anyone is going to get too aggressively short before the meeting,” said Robert McNally, president of Rapidan Energy Group in Bethesda, Maryland.

Reporting by Ahmad Ghaddar and Julia Payne; Additional reporting by Jessica Resnick-Ault; Writing by Rania El Gamal; Editing by Pravin Char, Peter Cooney and Diane Craft

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Source: Reuters