Oil price takes one step up ahead of the critical Doha meeting on Sunday

Discussion in 'CFDs' started by Profiforex_Victory, Apr 14, 2016.

  1. Profiforex_Victory

    Profiforex_Victory Новичок

    There was a brief rise in oil this Thursday. This was following the International Energy Agency chopping down their forecast as regards demand growth. International Energy Agency pointed out that there was increase in the possibility of US oil output falling. The climb in oil was well supporters following data which came out on consumer prices in the US. Consumer prices had come out lower than expectation, this triggered a fall in the American dollar. As we know when the dollar is weaker, oil stands a better chance of rising.

    A decline in the dollar increases its affordability to others currency holders. The cut in estimate from the International Energy Agency for the global demand growth this year brought it to 1.16 million barrel for each day. As the agency greatly anticipated a more likely decline in light and tight oil production in the US.

    There was increased uncertainty in the market ahead of the meeting in Doha on Sunday of the greatest oil exporters globally. Among those to hold the meeting include big oil exporters like Russia and Saudi Arabia. The meeting is expected to bring about the finalization of a February deal to freeze oil output at January levels. This is largely to push up oil prices. But then a good number of analysts are of the opinion that the meeting might not finish the deal ending up in a disappointment.

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