OPEC cancels meeting because of Saudi Arabia

A power play by Saudi Arabia has resulted in the cancellation of a meeting intended to steer the world’s oil exporters towards a production freeze, causing oil prices to tank on Friday.

After the kingdom decided to take a rain check for a Monday meeting that would have brought together OPEC members and non-OPEC members, the remaining attendees called the event off completely, OilPrice.com writes.

As a result, Brent barrel prices had fallen by 3.59 percent, erasing the gains of a week’s worth of OPEC-related speculation regarding the status of a cartel-wide freeze deal.

Asked for the logic behind the Saudi’s backing out of Monday’s international meeting, Saudi Arabia said it wants OPEC members to agree on a deal before sitting down with non-OPEC producers—for example, heavyweights such as Russia, which OPEC is keenly aware needs to be onboard for any meaningful contraction on the supply side of things.