Oil drops toward 17-year low as hopes for OPEC-Texas production truce fade

TOKYO - 23 March 2020: Oil dropped toward the lowest level since 2003 as prospects for a deal between OPEC and Texas to limit production appeared to fade, while a US coronavirus rescue package ran into political delay, Bloomberg reported Monday.

Futures in London fell around 4 percent to near $26 a barrel, while West Texas Intermediate rose after the April contract expired Friday.

Texas Railroad Commissioner Ryan Sitton landed a rare invitation to attend OPEC’s June meeting on Friday, but just hours later hopes for an agreement began to unravel as his call to curb output was criticized by regulators and drillers.

Democrats in the US Senate blocked a Republican economic recovery package of nearly $2 trillion, describing it as too focused on corporations at the expense of workers.

Major support measures remain likely but could take additional time for the two parties to work out their differences. Asian stocks tumbled, while US equity futures dropped 5 percent and hit their down limit.