Crude oil futures continued to experience bullish momentum on Monday following reports that multiple members of OPEC are trying to forge a deal to freeze oil production in an effort to tackle lingering oversupply. OPEC Members Kuwait, Venezuela and Ecuador believe a cut in output will boost crude prices and put in a price floor at around $40.00 per barrel. This is not the first time OPEC tried to implement a deal to freeze output in an effort to help support prices. Back in April, Iran refused to cap production until the nation reached ‘pre-sanction’ levels of production in an effort to gain back market share. Qatar’s Energy Minister Mohammed Bin Saleh al-Sada stated that OPEC will meet again on September 26th in Algeria to discuss ‘if and when’ a freeze is necessary at that moment in time.
West Texas Intermediate crude oil futures were briefly seen below $40.00 a barrel level last Tuesday before gaining steadily since, even amid rising US onshore inventories. As of 11:45 GMT Monday, crude futures were reading at $42.46 per barrel, indicating a continued upswing despite the possibility of another glut completely filling available onshore storage capacity.
Crude Futures Continue to Rise as OPEC Presses for a Production Freeze
Market Trends - 08/08/2016