Saudi Arabia, Qatar, Russia and Venezuela on Tuesday
reportedly agreed to freeze oil production at January levels if other
oil-producing countries do the same. Those reports initially sparked a rally in
the commodity -- and in U.S. stocks -- but then reality set in. Indications
that Iraq and Iran have no plans to slash production dampened hopes for a
global reduction in oil output — and oil prices relinquished earlier gains,
slipping into negative territory. West Texas Intermediate crude fell 1.4% to
$29.04, while Brent crude, the international standard, slipped 3.6% to $32.18. Tuesday's
report of possible agreement on production levels marked the latest in a series
of reports over the last several weeks that OPEC could be nearing an agreement.
But in each case, the market has responded positively, driving up the price of
oil briefly before recognizing the hopes of production cuts may be fleeting. More…
Wednesday, February 17, 2016
Potential oil output freeze can't stop oil's slide
Saudi Arabia, Qatar, Russia and Venezuela on Tuesday
reportedly agreed to freeze oil production at January levels if other
oil-producing countries do the same. Those reports initially sparked a rally in
the commodity -- and in U.S. stocks -- but then reality set in. Indications
that Iraq and Iran have no plans to slash production dampened hopes for a
global reduction in oil output — and oil prices relinquished earlier gains,
slipping into negative territory. West Texas Intermediate crude fell 1.4% to
$29.04, while Brent crude, the international standard, slipped 3.6% to $32.18. Tuesday's
report of possible agreement on production levels marked the latest in a series
of reports over the last several weeks that OPEC could be nearing an agreement.
But in each case, the market has responded positively, driving up the price of
oil briefly before recognizing the hopes of production cuts may be fleeting. More…
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