Lot has been happening for the past few days, some of which are encouraging for the oil bulls, while others favor the bear side. According to announcement, few weeks ago, major OPEC and non-OPEC members will be meeting in Doha, Qatar on April 17th.
- Good news is that Saudi Arabia has agreed to take part in the meeting even if Iran, doesn’t join it. Iran has remained defiant over production freeze and stated clearly that it would not join any production freeze or cut as of now. Russia has recognized Iran’s claims that its production is at quite a low, due to sanctions since 2011, which were partially removed earlier this year. Best part is that Iran’s arch rival Saudi Arabia recognizes the claims and last month it has agreed to a production freeze with Russia.
Russia has been taking up an active role and spokesperson said that its relations with Saudi Arabia has improved.
As of now 15 OPEC and non-OPEC members are expected to join the initiative of oil freeze.
- Bad news is that Libya has said that it will not join the meeting in Doha next month.
However, that hasn’t materially affected oil prices so far, because output in Libya is just around 0.5 million barrels/day and any major upshift is unlikely.
WTI is currently trading at $41.1/barrel and Brent at 40 cents premium per barrel.
The material has been provided by InstaForex Company – www.instaforex.com