OPEC attempts to rescue a deal to limit oil output as tensions grow among the producer group and non-OPEC member Russia. It comes as oil prices fall again, adding to Friday's steep losses. Ciara Lee reports.
It was a bumpy start for global oil prices, falling as much as two percent in early trade, and leading the dollar to its biggest drop in almost a month. The Organization of the Petroleum Exporting Countries, or OPEC, is meeting later this week. And doubts remain over whether a rough plan to cut supply reached in September, will ever become a reality. (SOUNDBITE) (English) MIKE INGRAM, MARKET STRATEGIST, BGC PARTNERS, SAYING: "If you look back to the tentative agreement brokered in Algiers at the end of September, it was to cut OPEC production to between thirty two and a half and thirty three million barrels a day. That implies between a one and one million and a half barrel cut from the record levels in October. The problem is trying to work out who is actually going to implement this." The initial fall in prices came after a 3.5 percent plunge on Friday when it emerged that top OPEC-exporter Saudi Arabia would not hold talks with non-OPEC producers on potential cuts. Then on Sunday they said the oil market would rebalance itself in 2017, even if producers decide not to intervene. And all the while the simmering disagreement continues between OPEC and non-OPEC exporters like Russia over who should cut production by how much. (SOUNDBITE) (English) MIKE INGRAM, MARKET STRATEGIST, BGC PARTNERS, SAYING: "You've got this very very long list of OPEC producers who say they don't want to cut. In fact many such as Libya and Nigeria are seeking to actually increase production from where it is currently. So the issue is as ever, implementation." Prices recovered slighly as the day wore on. And some analysts expect them to rebound if the meeting succeeds in reaching the targeted production cap. But even if that happens, it's uncertain whether it would be enough to prop up a market dogged by oversupply since 2014.