Oil drops on oversupply worries as Saudi Arabia, Russia delay meeting

Brent crude slipped close to $30 a barrel in early trade and was at $33.45 by 5:32am GMT, down 66 cents, or 1.9 per cent. West Texas Intermediate crude fell 98 cents, or 3.5pc, to $27.36 a barrel, after earlier touching a low of $25.28.

Late last week, prices surged, with United States and Brent contracts posting their largest ever weekly percentage gains due to hopes that the Organisation of the Petroleum Exporting Countries (Opec) and its allies would strike a deal to cut crude supply worldwide by at least 10 million barrels per day (bpd).

Saudi Arabia and Russia were initially set to meet on Monday to discuss output cuts, but that has now been pushed to April 9, after they blamed each other for the collapse of talks in March.

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