As the international expert community is actively discussing the possibility of all major oil exporters reaching a compromise and freezing their oil production, oil prices are still moving higher. At the same time, experts say that the future tendency in the global market of crude oil is going to be driven by Saudi Arabia and the global economy.
According to the recent data, Brent oil is trading close to the psychological level of $40 per barrel, Masterforex-V Academy reports. For the sake of comparison, the price of Brent oil used to be trading close to the 13-month low 4 weeks ago. According to investing.com, the price set a new low at $27.88 per barrel.
At the same time, Bloomberg reports that oil prices are going up in advance of the forthcoming meeting between some OPEC members and other oil-exporting nations to discuss the ways and means of curbing the oil downtrend that has been going on for the last 20 months. Some sources report that the meeting is planned for March 20th and is going to take place in Moscow, Russia.
By the way, Bloomberg previously reported that Russia, Qatar, Venezuela and Saudi Arabia had discussed the possibility of freezing their oil production volume at the level of January 11th. With that being said, this is probably going to be the key issue on the agenda.
At the same time, experts say that it is too early to make some strong predictions regarding the near-term future of crude oil since the results of the forthcoming meeting are uncertain and hard to predict. The current rebound up to $40 per barrel has been predictable. While there are some factors supporting oil prices, other experts say that this is just a rebound and there is no point in expecting a strong rally in the international market of crude oil in the near future. On the contrary, the bias is still bearish and well may well see another strong bearish move right after the summit in Moscow is over. Anyway, the market is uncertain at this point. What’s coming next? Well, that remains to be seen…
