WTI oil turned sharply lower Thursday after a report signalled that a meeting of major oil producers to
solidify a global pact to freeze production is "unlikely" to happen.
A Reuters report on Thursday said the closely watched meeting set for March 20 is "unlikely to take place" in Russia,
citing unnamed sources. Non-OPEC members are trying to
setup a second half of the year recovery with crude oil prices, as long as demand and geopolitical conditions cooperate. Bunker
prices were firm today in the primary ports.
Crude oil prices could fall
by $10 per barrel, erasing recent gains, if OPEC and non-OPEC countries fail to
finalize a plan to freeze output levels, Norwegian brokerage DNB Markets
predicted on Thursday.
An Iraqi oil official told state newspaper Al-Sabah on Wednesday
that the world's biggest oil exporters both in and outside the Organization of
the Petroleum Exporting Countries plan to meet in Moscow on March 20 to discuss an output freeze.
The report was later denied by Russia's energy ministry, which
said no date or place had been set for a possible meeting. "If they can
agree on a production freeze I think we have seen a bottom. If they fail,
I think the oil price will drop $10 per barrel again," DNB
Markets analyst Torbjoern Kjus told an energy conference in Oslo.
OPEC members Saudi Arabia,
Qatar and Venezuela, along with non-OPEC exporter Russia, pledged earlier this
year to leave supply at January's levels if others cooperated.
China's crude-oil imports
to grow at an average rate of 3.2% a year from 2016 to 2020, from an
estimated 6.9 million barrels a day in 2016 to 7.8 million barrels a day in
2020.
Gold
Gold prices rallied after the European Central Bank (ECB) announced
additional monetary easing. The ECB cut the deposit rate to -0.4%
from -0.3%. The refinancing rate was trimmed down five basis points to 0.00%. The central bank also expanded its asset purchase
program from 60 billion euros monthly to 80 billion euros a month starting in
April.
Investors worldwide have
increasingly lost confidence in central banks. That lack of faith and
negative-interest-rate policies have sent investors to safe-haven investments
like gold. And that will only continue to push the price of gold
higher.
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