Oil Hits 3-Week High, Sentiment on Production Freeze Continues

Market Trends - 15/08/2016

Oil prices gained steam for the third day in a row hitting its three-week high on hints that major oil producers will freeze production. OPEC will be meeting next month in Algiers to discuss a production freeze as a major discrepancy between the larger and smaller OPEC nations still exists. In July, Saudi Arabia produced more oil in a month in ever recorded and Iran announced that it won’t recommend a freeze until its crude levels reach pre-sanction figures. Smaller countries like Venezuela are pushing for a production freeze as oil is its biggest export and hasn’t created a profit for them in over a year. U.S. crude was up 40 cents, or 0.90% at $44.89 a barrel during morning hours in New York, while Brent tacked on 38 cents, or 0.81% to $47.35 a barrel.

On Monday, Russia reported that they haven’t ruled out an agreement with other major oil producers to freeze output in an effort to stabilize as crude prices are up nearly 10.00% so far in August. Saudi energy minister Khalid al-Falih stated last month that the idea that OPEC might take action to stabilize oil prices and to protect the organization from a glut is recommended.



This website uses cookies to ensure best possible user experience. Read more