Both Brent Crude and the U.S. Crude Futures remained positive throughout the session before slipping marginally. Brent Crude (LCO.1) is seen trading around $33.69, down by 0.59% while U.S. Crude Oil Futures dipped by 0.36% to $33.10.
Crude finds support above $30 bpd
Crude found support above $30 per barrel after reports that oil producing nations can reach an agreement to co-ordinate supply cut. However, analysts are considering such a possibility too dim to happen in the absence of a more inspiring development. Given the present circumstances, analysts have projected that any upward momentum in the oil prices will be limited.
Conflicting statements from Russia
Meanwhile, a fresh report surfaced today from the Kremlin. Representative, Dmitry Peskov, said that Russia is willing to discuss the current oil scenario with other oil producers. In its bid to improve the oil market, Russia has expressed its interest to reach out to all players in the global oil market. However, there has not been any direct indication that Russia will necessarily agree to output cut.
A day earlier, Russian Energy Minister, Alexander Novak, stated that Russia is interested in attending a scheduled meet between OPEC and non-OPEC countries in February. The agenda of the meeting is said to be centred around oil production cut by 5%. However, another statement from Russia’s Deputy Prime Minister, Arkady Dvorkovich, today, indicating that the state will not interfere in balancing the market is seen contradictory to yesterday’s remarks.
According Jefferies analyst, the probability might be dim but projected that a 5% output cut by both Russia and Saudi Arabia could balance the markets if the talks come through. Meanwhile, Iran’s aggressive oil production remains a concern on the sidelines and can overtake the market sentiment anytime if the latest buzz falls apart.
According to recent information, Tehran is aggressively pumping out more oil each day, which can worsen the current oil glut situation if not addressed on time.