The oil market is recovering from the winter of our discontent. Oil rose as much as 3.9 percent in New York and 4.4 percent in London. WTI change hands for $41,79 per barrel, Brent for - $44,35. On Sunday Saudis and Russians reached an agreement regarding output. According to Bloomberg, the output will be frozen on January level, and after June oil producers and exporters will decline their activity. Sounds like the “once upon a time”, as a fairy tale solution of all problems. These days Lausanne hosts the Financial Times Commodities Summit. The expression “It is beginning of the end” was already in use. Investors rush for the last opportunity to purchase cheap oil futures. Market analysts scrutinize charts in an attempt to diagnose the pivot. The declining trend has dominated since 2011. However back in 2011 no one foresaw $28 per barrel. Even Machiavellian Saudis in the hot summer of 2014 did not suffer from a nightmare with oil below $30 per barrel. The globe is sick of halfpenny oil. Although International Monetary Fund and Christine Legrand explained how we benefit thanks to cheap energy, oil exporters have suffered from social tension and skinny budgets. Not all of them – Saudi Arabia and UAE just kissed the cup of the disaster.
And who wins the prize? Who celebrates the rally of oil prices? Who gets more per barrel? Do not mention! You Know Who and He Who Must Not Be Named. Inspirators of the current oil crisis at the moment sell their treasure and calculating profit. How smart they are collaborating with Russians before the official meeting in Doha, scheduled on April 17! Iran performs the third party of the oil Bermuda Triangle. Iranians are not interested in freezing oil output, but Tehran cannot produce wore, than the new allies, two huge oil exporters. By the way, also Tehran will get more petrodollars per every single barrel…
The world expects $50 per barrel in December 2016.
The down market is behind us? Probably, yes. However, happy days with $100 per barrel will never return. I beg your pardon. Never tell me never. Who knows what will happen with USD…