By Amrith Ramkumar 

Oil prices fell Monday, paring some of their recent rebound after a virtual summit for producers to discuss supply cuts was postponed to later in the week.

U.S. crude futures dropped 8% to $26.08 a barrel on the New York Mercantile Exchange, coming off their largest one-week percentage advance ever. After tumbling to an 18-year low, prices soared late last week after President Trump said that Russia and Saudi Arabia were close to reaching a deal to curb supply. Even with that rebound, they are down about 57% for the year.

On Monday, Brent crude, the global gauge of oil prices, slid 3.1% to $33.05 a barrel on the Intercontinental Exchange.

Measures to contain the coronavirus pandemic have pummeled fuel demand, while a spat between Saudi Arabia and Russia over their share of global energy markets has deepened the oil glut. Prices have fallen so much that many producers can't cover their costs. And the world could soon run out of storage for its excess oil, adding to the sense of urgency for many nations and companies to begin lowering supply.

Some investors were hoping U.S. companies would outline some measures after a meeting between Mr. Trump and energy-industry executives on Friday. But no such signals were announced, and a Monday summit between the Organization of the Petroleum Exporting Countries and its allies including Russia was pushed back to Thursday after Saudi Arabia and Russia traded barbs.

The Group of 20 major economies are also considering holding an emergency energy summit on Friday, and OPEC may make any supply cuts contingent on participation from other countries.

A deal between OPEC and allies to cut output fell apart last month, helping contribute to the downward spiral in the energy sector.

Some traders expect oil to remain extremely volatile until there is more clarity on supply cuts. Prices fell roughly 10% when futures trading opened on Sunday evening but pared some of that drop after Kiril Dmitriev, chief executive of the Russian Direct Investment Fund, told CNBC the parties are "very, very close" to a deal and that "Russia is committed" following recent comments from Russian President Vladimir Putin.

At the same time, signs that transportation activity could be limited for months have convinced some analysts that supply cuts alone won't be enough to drive a long-term price rebound.

"Extreme virus containment efforts have decimated transportation fuel demand," Bank of America analysts said in a note.

Monday's market moves came with stocks around the world rallying following some early signs that lockdowns in the U.S. and Europe may be helping slow the spread of the coronavirus.

Elsewhere in commodities Monday, front-month gold futures rose 2.7% to $1,677 a troy ounce, hitting a fresh seven-year high. Physical shortages due to shutdowns of mines, refineries and transportation have helped support gold prices, as have steady safe-haven buying and a slew of interest-rate cuts around the world. Lower rates make gold more attractive to yield-seeking investors.

Write to Amrith Ramkumar at amrith.ramkumar@wsj.com

(END) Dow Jones Newswires

April 06, 2020 15:22 ET (19:22 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.