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Brent: prices decline resumed

The pressure on the oil and gas sector of the world economy and oil prices resumed after yesterday Saudi Oil Minister Ali Al-Naimi, commenting on the recent agreement of 4 countries (Russia, Saudi Arabia, Qatar, Venezuela) to freeze production on January levels, said that Saudi Arabia has no plans to decrease oil production. "Comic" on top of that Iranian Oil Minister Bijan Zanganeh named yesterday the idea to restrict oil production.

Iran still intends to increase oil production to at least 4.2 million barrels a day in the near future.

Earlier, a meeting of representatives of four oil-producing countries in Doha (Qatar) has revived hope for the further restriction of the collective volume of world oil production.

Moreover, an agreement was joined by other countries, including Iraq, Oman, Qatar.

However, yesterday's ministerial comments strengthened the market position of the oil sellers and price-spot Brent crude oil fell to around 33.00 dollars per barrel.
Yesterday, the American Petroleum Institute (API) reported an increase in US oil inventories by 7.1 million barrels. If today at 15:30 (GMT) US Department of Energy confirms the forecast on the growth of oil and petroleum products in the country in the last week (at 3.165 million barrels), the pressure on oil prices will increase, as US crude stocks reached a new record high for the last 80 years.

Once again, the growing crisis in the oil market may entail a growing concern of investors about the health of the world economy that could trigger another fall in global stock markets.

Technical analysis and trading recommendations - https://fxpcm.com/fx/brent-prices-decline-resumed-after-comments-oil-ministers

Wednesday, 24 Feb, 2016 / 1:39

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