Oil Drops on Falling Prospect of Output Freeze
Production cut was never a possibility according to markets, but even a production freeze strategy appears a distant dream now owing to which both oil benchmarks dropped on Friday and extended losses today.
At the time of writing, Brent oil was down 37 cents or 1% at $38.30. WTI oil futures were down 45 cents or 1.2% t $36.33.
Saudi made it clear once again on Friday that the Kingdom would be comfortable with production freeze only if other major producers including Iran agree to freeze output. This was a major blow for oil bulls who believed major nations may reach a productive decision at April meeting irrespective of Iran’s commitment to freeze output.
Consequently, we are once again back to ground zero, where speculation is on whether Iran and Saudi would come to common terms.
(Market News Provided by FXstreet)