Crude Oil : Oil prices rose
7 percent on Wednesday after Iran voiced support for a Russia-Saudi-led move to
freeze production to deal with the market glut that had pressured crude prices
to their lowest in a dozen years. Iranian Oil Minister Bijan Zanganeh met
counterparts from Venezuela, Iraq and Qatar in Tehran for over two hours on
Wednesday, saying the proposed production "ceiling" should be the
first step toward stabilizing the market. Zanganeh, quoted by Tehran's Shana
news agency, did not say explicitly say that Iran will keep its own output at
January's levels, in line with the proposal that major producers including
Russia and Saudi Arabia restrict output. An Iranian official, speaking before
Wednesday's meeting, said Iran would continue increasing its oil output to
levels held before the 2012 trade sanctions imposed on the fourth largest
producer in the Organization of the Petroleum Exporting Countries. Tehran has
been the main obstacle to the first joint OPEC and non-OPEC deal in 15 years,
after its pledge to recapture market share lost to sanctions. Even so,
Zanganeh's endorsement of the production freeze plan helped spark a powerful
rally.
Outlook: We expect crude
oil prices to trade positive on the back of Russia-Saudiled move to freeze
production.
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