Oil prices decline $3 a barrel as market remains uncertain on supply outlook

Global benchmark oil prices traded $ 3 a barrel lower as the market opened for Monday’s trading session, reflecting fears of oversupply after Saudi Arabia and Russia postponed to Thursday a meeting about a potential pact to cut production.

The price decline may be muted because Saudi Arabia sent a signal that a production cut deal may be ahead, and the United States has said it will put pressure on Saudi Arabia and its allies for such a deal.

“I don’t know that anyone is going to get too aggressively short before the meeting,” said Robert McNally, president of Rapidan Energy Group in Bethesda, Maryland.