Tue 16th Feb '16
Jasper Lawler, of CMC Markets, comments on the production freeze agreed earlier this morning by Qatar, Saudi Arabia, Russia and Venezuela:
"The meeting was reported to have finished by 9am, not exactly the longest meeting in history, with an agreement to freeze production at January levels rather than cut it back. Brent crude lost $1.50 per barrel from its highs of the day as the news broke. With the price having just touched its highest this month, oil market risks were always skewed to the downside.
"The output freeze is disappointing because it’s not an outright cut and with Iran not a part of the meeting, it’s still a bit far-fetched to think this is a precursor to a future cut. Iran’s absence from the meeting means overall OPEC output should still rise."
Brent crude has fallen 4.45pc from an intraday high of $35.50 a-barrel to $33.92, recovering ever so slightly from hitting a nadir of $33.72 today.