Opec+ deal failure sends oil spiraling
Brent price falls from $45/bl to $25/bl in early trade, before partial recovery to $36/bl at 10am, as production surge threatened amid weak demand
Global oil markets were sent into turmoil on Sunday off the back of the Opec+ group’s failure to agree a production reduction target. It signals an end to the post-2016 policy of protecting price at the expense of losing market share, and implies the group could produce far more than expected at a time of sharply falling demand. Poor oil demand forecasts had weakened sharply due to the spread of Covid-19, on top of an already subdued outlook. “The potential for a strong recovery remains a distant prospect,” says Niamh McBurney, head of Mena at global risk consultancy Verisk Maplecroft. “A production free-for-all has the potential to hurt vulnerable Opec producers, such as Iraq and Nigeria
Also in this section
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
1 April 2026
The US-Iran conflict demonstrates the need for diversification in several senses of the word. It also exposes the limits of Washington applying pressure on major oil and gas producers it considers geopolitical adversaries
31 March 2026
Disappointing results in its bidding round are a reality check for Libya, and global exploration generally
