Oil prices soar on fresh hopes for an output freeze
During Wednesday’s Asia trade oil prices edged up, following hopes that number one crude producers might come to a long-awaited compromise as for an output production a bit later this month notwithstanding clashes on this issue between Saudi Arabia and Iran.
Crude prices surged overnight, right after Kuwait, one of the most crucial members of the OPEC, manifested confidence that key players within and outside the OPEC will progress with the popular proposal to cut crude production.
In New York May delivery crude futures traded at $36.88 per barrel, thus showing a 2.6% ascend. In London, June delivery Brent oil futures traded at $38.59 or a 1.9% surge.
Crude oil prices have been range-bound for several months, following rumors of a probable output freeze. Some financial analysts tell that even if a long-awaited agreement is successfully reached at the upcoming OPEC meeting this month, the move won’t probably make any considerable dent especially taking into account permanent glut. Other experts consider it to be a decent step towards rebalancing the crude market.