For this week, crude oil prices have remained unstable although Iran support for supply freezes. The rise in price since February 11th have been centered around the hope that a supported agreement by Russia and Saudi Arabia could limit the amount of Oil brought onto the market, which continues to distort the supply-demand imbalance.
Presently market is hurt by a stock and flow problem where there is too much stock and not enough flow, and it doesn’t appear the stock is slowing down.
Volatility is likely to remained high in near future it appears as though Iran and Iraq support the idea of some OPEC and non OPEC members to freezing their oil production. Oil price can make a comeback if the demand growth improves or US shale oil output falls substantially.
On Thursday, closing crude values have increased.WTI on NYME closed at $30.77/bbl, increased by $0.11/bbl compared to last closing prices. While Brent on Inter Continental Exchange reduced by $0.22/bbl compared to last trading and was assessed around $34.28/bbl.
