Oil Prices Plunge as OPEC Fails to Reach Agreement With Russia on Deeper Production Cuts

U.S. oil prices fell more than 10% Friday after OPEC leaders failed to reach an agreement with Russia to deepen a pact on production cuts.

Global oil prices plunged the most in more than a decade Friday after a multi-year pact between OPEC members and Russia collapsed after they failed to reach an agreement to deepen production cuts that would have removed more around 3 million barrels from the market each day.

OPEC agreed Thursday in Vienna to reduce output by a further 1.5 million barrels per day, a level that equals around 1.5% of global demand, as long as Russia and other non-member states supported the proposal with cuts of their own.

The cartel Friday, however, issued a statement that made no mention of ether deeper cuts, or indeed rolling over the existing output agreement from 2016, which withholds around 1.7 million barrels per day from the market and is set to expire at the end of the month. OPEC instead noted that member state producers would "continue to stabilize markets".

Brent crude futures contracts for May delivery fell more than 9.4%, or $4.72 per barrel --the biggest one-day decline since 2008 -- to settle at $45.27 per barrel on Friday. That's the lowest level for the global benchmark since 2016.

WTI contracts for April delivery, which are more tightly correlated to U.S. gasoline prices, end the Friday session 10% lower, amid the steepest decline since November 2014, at $41.28 per barrel.

U.S. energy stocks were also nursing steep declines following the OPEC agreement collapse, with Occidental Petroleum  (OXY) - Get Report falling 12.8% to $27.45 each and Devon Energy  (DVN) - Get Report slumping 12.2% to $14.01 each.

Exxon Mobil Corp,  (XOM) - Get Report the country's biggest oil producer, was marked 4.83% lower at $47.74, sliding into bear market territory after falling 23.2% over the past month, while rival Chevron Corp  (CVX) - Get Report, was seen 2.9% lower at $94.45 each.