Crude Oil Market Unimpressed By OPEC “Freeze” Speak
Iran believes a global agreement to freeze Crude Oil output will not be enough to help prop up prices as the world is producing too much petroleum.
Iranian Oil Minister Bijan Zanganeh and his counterparts from Qatar, Iraq and Venezuela held talks in Tehran Wednesday aimed at persuading Iran to join a global pact to restrain output, agreed this week by OPEC leader Saudi Arabia and non-OPEC member Russia, the world’s 2 largest Crude Oil exporters.
Mr. Zanganeh chose his words very carefully after the meeting saying Iran, OPEC’s 3rd largest producer, supported the initiative as a first step to re-balance the markets and help prices recover from their lowest in over 10 years.
During talks Iran stuck to its standard hard line that Tehran needs to regain market share it lost during years of sanctions while adding that regardless of what Iran does, the world was already awash with Crude Oil.
The problem in the Oil market is the glut.
There is a need to do something to bring down these extra barrels, a freeze for those nations that have been producing to the maximum does not help the market.
The global pact idea should be discussed further when “countries that have increased their output,mainly Saudi Arabia, drop their production and Iran reaches pre-sanction levels of production.
|WBR Analysis for OIL:||Overall||Short||Intermediate||Long|
|Bearish (-0.49)||Bearish (-0.31)||Very Bearish (-0.62)||Very Bearish (-0.54)|
|WBR Analysis for USO:||Overall||Short||Intermediate||Long|
|Bearish (-0.47)||Neutral (-0.21)||Very Bearish (-0.57)||Very Bearish (-0.62)|
Have a terrific weekend,
West Brook Radio