International mass media report that the cost of Brent oil has exceeded $45/b for the first time since December 2015. The fact is definitely reassuring major oil producers and exporters of crude oil since stronger oil prices mean higher profits from their oil exports.
At the same time, some representatives of the international expert community name the true reasons why oil prices are recovering at such a stunning pace. First off, the prices started rallying after the USA released another weekly report on U.S. crude oil inventories. The thing is, the inventories turned out to be way smaller than expected. As of late Wednesday, oil prices were trading around $45,52/b. This was a 3,38% increase relative to the previous close. This is the first time the prices have advanced that far over the last 4 months, Market Leader reports.
Still, the U.S. oil inventories reports wasn’t the only market driver. There was a whole bunch of various factors contributing to the unexpected rally. To be more specific, there was a major strike among people working for the biggest oil companies in Kuwait. On Wednesday night the strike was reported to be over but the market got the message anyway and reacted accordingly.
At the same time, despite the fact that the recent oil summit in Doha failed to end up with the participants freezing oil production quotas at January’s levels, most of the participants are reported to be still ready for another dialog on the matter, which still creates some space for success. Some experts say that the next oil summit is going to take place in Russia in May 2016. The summit is expected to welcome OPEC members as well as some other major oil exporters.
