Oil dips ahead of producer meeting uncertainty
On Thursday, oil tumbled because the OPEC warned of slowing demand, while Russia dropped a hint that there might be only a loose agreement with just tiny commitments at the upcoming exporter meeting to cope with constantly growing oversupply.
Goldman Sachs has just informed that productivity revenues of American shale producers keep sticking to their deflationary outlook for crude prices, because drillers adjusted to lower crude prices and being assured of an approaching end of this rally, market participants are looking forward to further price descends.
Brent crude futures traded at $43.59 or -1.35%. US crude lost 1.55%, trading at $41.10.
Alexander Novak, Russian oil minister at his briefing stressed that a deal on a production freeze planned this weekend is going to be loosely-framed with a couple of detailed commitments.
Most probably, the agreement wont’ be strictly formulated. To some extent, it’s going to be a gentlemen’s agreement.
Some experts think that the upcoming agreement will generate bearish sentiment for the months ahead.