Oil prices were pumping aggressively higher over the course of Thursday and Friday, following renewed optimism of an OPEC+ deal.
Trump had been largely indicating that both Saudi Arabia and Russia could agree to a deal to scale back oil production.
Relations between the two noted countries have been very much sour since the collapse of the last OPEC+ meeting early in March.
Oil prices, looking specifically at the case of WTI Crude, have dropped some 60%, following the lack of agreement with OPEC+. A price war commenced, forcing prices to 18-year lows.
There were various source comments that gathered some pace on Friday, suggesting that many members of OPEC+ and outsiders such as Canada, agreed that collective action is needed.
Saudi officials initially confirmed that an emergency virtual meeting on Monday would be taking place. However, latest reports are now suggesting that OPEC and its allies will likely postpone it until April 8 or 9 to allow more time for negotiations among oil producers on crude supply cuts, according to two OPEC sources on Saturday.
What happens to oil next week
Prices could receive a knockback at the open given this delay, however, total ground is unlikely to be lost. Markets will likely remain optimistic heading into a virtual meeting, so long as it does not keep getting postponed.
Any failure of something being agreed, with a particular focus on Saudi Arabia and Russia output cuts, then oil prices will be slammed. In FX, this would also see CAD dragged to the downside, given the correlation with oil. It could also harm market sentiment and invite some safe-haven flows.
An agreement would be very bullish for oil and CAD, in addition to promoting some risk-appetite to the market.
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