Oil skids after Saudi-Russia talks delayed

News on Sunday(5 April) that OPEC talks were delayed sparked an oil price drop in overnight trading.

Negotiations between Saudi Arabia and Russia were kicked to Thursday and that's keeping fears of oil oversupply alive.

Major oil producers Saudi Arabia and Russia have been locked in a month-long price war.

So far this year the price of crude has been in free fall, plummeting by two thirds.

And despite optimism on Friday-over the weekend, there was no sign of a resolution.

Sunday also saw Saudi Arabia delay setting its oil prices for May, an unprecedented step.

Given fuel demand is expected to fall about a third worldwide, Thursday's OPEC meeting is set to see talk about cutting production.

Saudi Arabia leads The Organization of the Petroleum Exporting Countries, but members have also called on other big producers, like the United States to be involved.

U.S. President Donald Trump last week touted the possibility of brokering an end to Saudi and Russia's oil battle.

It would see output slashed by 10 to 15 million barrels per day.

On Sunday he again threatened to slap tariffs on oil imports on Saudi Arabia or Russia to try and push for an agreement.

(SOUNDBITE) (English) U.S. PRESIDENT DONALD TRUMP, SAYING:

"Tariffs are a way of evening the score. Tariffs are a way of just neutralizing. They have tariffs on us and we now can put tariffs on them. Am I using it for oil? It's something we can. No. Am I doing it now? No. Am I thinking about imposing it as of this moment? No. But if we're not treated fairly. It's certainly a tool in the toolbox."

All eyes are on Thursday's meeting - hoping to avoid a repeat of OPEC's March summit.

That's when talks collapsed after Russia refused to cut ouput and Saudi slashed prices, sparking the oil plunge.