• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 1 hour China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 5 hours US to Drown the World in Oil
  • 6 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 13 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 7 hours Iran Is Winning Big In The Middle East
  • 2 hours The Rarely Revealed Part of the Nuclear Problem
  • 5 hours With Global Warming Greenland is Prime Real Estate
  • 6 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 45 mins Used Thin Film Solar Panels at 15 Cents per Watt
  • 10 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 15 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 12 hours LA Solar Power/Storage Contract
  • 2 hours Trump cancels Denmark visit amid spat over sale of Greenland
  • 10 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
Alt Text

U.S. Sanctions To Halve Venezuela’s Oil Rig Count

A U.S. sanction waiver expiry…

Alt Text

Oil Plunges On Trade War Escalation

Oil prices plunged on Friday…

EconomicCalendar

EconomicCalendar

EconomicCalendar.com is a financial news website dedicated to covering the latest economic events as well as market commentary about forex, indices and commodities

More Info

Premium Content

Doha Is Just A Few Days Away. What Will It Mean For Oil Prices?

Wednesday is a day of contradictions as officials from Russia and Saudi Arabia are stating complete opposites in response to Tuesday's news, by Russian Interfax news agency, of the world’s two largest oil producers supposedly coming to terms over the production freeze regardless of if Iran is on board.

As those following the news of the oil industry no doubt remember, Iran has bluntly stated that it will not participate in any deals to cap output until the country’s production is at 4 million barrels per day (mb/d). Saudi Arabia, whose main concern is keeping its market share intact, responded that there could be no freeze deal without Iran. This chain of events has greatly undermined the probability that the upcoming meeting of major oil producers in Qatar on Sunday can bring forward a solution that will change the flow of the oil market for the better. Related: Why India Matters More For Oil Than China

Nonetheless, on Tuesday, oil prices saw a rise to their 5-month highs with both benchmarks breaking above their 200-day moving average, despite the lack of commentary from either side.

Comments came much later, on Wednesday, with the Russian Energy Ministry confirming that its head – Alexander Novak, has conducted talks with his Saudi counterpart. Russian TASS information agency reported on this, however, the only comment from the ministry’s representative was “We confirm the fact that negotiations took place.” A rather vague statement.

Saudi Arabia’s Oil Minister Ali Al-Naimi, on the other hand, was more specific. The UAE website gulfnews.com is referring to the Saudi state-owned al-Hayat newspaper, according to which Al-Naimi urged everyone to forget about his country cutting production. Related: End Of An Era: Peabody Declares Bankruptcy

In the meantime, OPEC has lowered its forecast of the oil demand increase for 2016 due to a decrease in consumption. The Organization believes that the daily increase of demand will be 50,000 barrels less than previously expected and will amount to 1.2 mb/d. It also needs to be noted that the forecast could be lowered further.

According to the OPEC report, if the volumes of the global crude oil production remain as they were in March, the oversupply in 2016 will amount to 790,000 barrels a day. It was earlier estimated that this figure would be at 760,000 barrels daily.

The U.S. crude oil stocks regained last week the 4.9 million barrels that they had lost the week before and added another 1.7 million on top of that for a total 6.6 million barrels, according to the EIA. Related: Tesla And Other Tech Giants Scramble For Lithium As Prices Double

Volatility was tremendous on Wednesday with prices continuing their forward march and WTI breaking through the $42 per barrel barrier, testing the $42.40 resistance before noon, but falling back below $42 to around $41.57 by 12:30 pm. Brent experienced a similar situation, reaching as high as $44.90 per barrel and retreating to the $44.08 mark. Wednesday ended on a downside note with both benchmarks closing below their open at $41.48 for WTI and $43.79 for Brent. As of 11:00 am (EST) Thursday, April 14, oil prices were back on the positive trend $41.84 and $44.31 and rising.

All things considered, the outlook of the Doha meeting remains grim. With each side looking out for itself, the sides will, most likely, fail to come to a conclusion as they have proven to do in the past. If no agreement is found on Sunday, oil prices can be expected to plummet, erasing a good portion of what they fought so hard to restore. However, if an agreement to freeze output can, indeed, be reached among the producers, which, for the time being, seems unlikely, prices will receive solid footing to stand on as well as prerequisite for further growth.

Donald Levit via EconomicCalendar.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • BennyU on April 14 2016 said:
    (If no agreement is found on Sunday, oil prices can be expected to plummet)

    I hope so. Why should I pay more at the pump to support 200 Saudi princes in a life of luxury?
  • Amie on April 16 2016 said:
    Umm because as a whole our economy is suffering.
    It has nothing to do with paying for a prince you should understand
    What the hell u are saying before posting it!

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play