Oil prices rose nearly 5% Thursday after the Saudi Arabian oil minister made comment s regarding possible action to stabilize prices triggered a round of buying. Also adding support was the International Energy Agency forecast crude markets would tighten in the second half of this year.
Saudi Arabia Energy Minister Khalid al-Falih said OPEC members and non-members would discuss the market situation, including any action that may be required to stabilize oil prices, during an informal meeting on September 26-28th in Algeria.
Many remain skeptical that anything related to price stabilization will happen, as they expect a repeat of the meeting back in April in Doha when talks fell through after Saudi Arabia backed out, citing Iran’s refusal to join in a so-called production freeze.
Also helping prices was comments from the IEA, which advises large developed economies on energy policy. The IEA forecast a healthy draw in global oil stocks in the next few months that would help ease an oversupply that has persisted since 2014. Specifically, the IEA said, “Oil’s drop… has put the ‘glut’ back into the headlines even though our balances show essentially no oversupply during the second half of the year.
In other positive news for the oil market, market intelligence firm Genscape reported a draw of about 271,000 barrels at the Cushing, Oklahoma delivery hub for WTI future in the week of August 9th.
The oil market remains incredibly volatile, bouncing or dropping day to day on different news from OPEC or non-OPEC members, as well as the IEA and other oil market researchers. The rest of the year likely will continue to see this volatility, unless there are glut-cutting measures taken by members of the industry.
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For stocks to buy in the Oil Industry, check out our podcast:
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Oil Prices Jump Nearly 5% As Saudi Arabia Considers Meeting For Price Stabilizing Measures
Oil prices rose nearly 5% Thursday after the Saudi Arabian oil minister made comment s regarding possible action to stabilize prices triggered a round of buying. Also adding support was the International Energy Agency forecast crude markets would tighten in the second half of this year.
Saudi Arabia Energy Minister Khalid al-Falih said OPEC members and non-members would discuss the market situation, including any action that may be required to stabilize oil prices, during an informal meeting on September 26-28th in Algeria.
Many remain skeptical that anything related to price stabilization will happen, as they expect a repeat of the meeting back in April in Doha when talks fell through after Saudi Arabia backed out, citing Iran’s refusal to join in a so-called production freeze.
Also helping prices was comments from the IEA, which advises large developed economies on energy policy. The IEA forecast a healthy draw in global oil stocks in the next few months that would help ease an oversupply that has persisted since 2014. Specifically, the IEA said, “Oil’s drop… has put the ‘glut’ back into the headlines even though our balances show essentially no oversupply during the second half of the year.
In other positive news for the oil market, market intelligence firm Genscape reported a draw of about 271,000 barrels at the Cushing, Oklahoma delivery hub for WTI future in the week of August 9th.
The oil market remains incredibly volatile, bouncing or dropping day to day on different news from OPEC or non-OPEC members, as well as the IEA and other oil market researchers. The rest of the year likely will continue to see this volatility, unless there are glut-cutting measures taken by members of the industry.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
For stocks to buy in the Oil Industry, check out our podcast: