Oil: Bucked the Downtrend and Showed Some Signs of Life - Rabobank
Stefan Koopman, Market Economist at Rabobank, notes that oil bucked the downward trend and showed some signs of life.
“The Kuwaiti OPEC-governor, AlFuzaia, noted that there were some “positive indications” that –either with or without Iran– an agreement will be reached. Russia now seems to agree with this; at least that is what a person familiar with the discussion (that guy always shows up!) told Reuters: “we don’t see tough conditions (from others) for Iran to join”. The Saudi Deputy Crown Prince, however, made it explicitly clear that he thinks otherwise. At least until April 17, when producers meet in Doha, the soap opera continues.
But that wasn't the only bit of news lifting oil prices. For the first time in two months, weekly stocks of crude fell. According to the EIA, crude inventories fell by 4.9mn barrels, which was even a bigger drawdown than the 3.2mn API-estimate last Tuesday. Nevertheless, at 529.9mn barrels, inventories are still very close to the workable capacity - meaning that the risk of a sudden sell-off remains.”
(Market News Provided by FXstreet)