The meeting of leading oil-producing countries without the presence of Iran and the United States will not make sense from the point of view of improving the situation on the world oil market. This opinion was expressed by senior analyst “Alpari” Anna Bodrov.
She recalled that earlier this week, “investors have won the first information about the possible disruption scheduled for March 20 in Russia the meeting of OPEC and others agree with the fixing of the parameters of the extraction of raw materials”. “Now also rapidly the market is rejoicing the news about the intention of the head of the Ministry of energy Alexander Novak to talk with the Iranian colleagues,” — said in comments the expert.
Meanwhile, she said, “without the presence of Iran in this meeting — as well as the US — meaning it will not be, despite the growing list of participants”. “This is all too similar to the swaying of the artificial oil market, and that is too small for long-term trend,” emphasizes Bodrov.
In the evening on Friday the world prices for “black gold” continues to rise, with the oil benchmark WTI for the first time since 7 December 2015, we broke the milestone of $39 per barrel. As of 18:05 Moscow time the price of may futures for North sea petroleum mix of mark Brent rose by 2.15% to $40,91 per barrel. The price of April futures for WTI crude oil rose to 2,93% up to $38,97 per barrel. Earlier in the course of trading the WTI crude oil jumped to $39,02 per barrel, reports RIA “Novosti”.
However, as the analyst believes, “today’s commodity rally already looks like a market tantrum”. “This may mean that there is correction. From a fundamental point of view there are no factors that would push commodity prices higher,” the expert believes.