April futures for Brent crude during trading on London exchange ICE rose on Tuesday by nearly 6%, rising to over $35 per barrel. The maximum Brent was trading at $35,35 per barrel.
The increase of oil quotations was observed against the background of reports about the upcoming informal talks between the energy Ministers of Russia and Saudi Arabia, said the Agency Bloomberg.
“What the meeting will be held, is only preliminary information,” the Agency said RIC Spooner, chief analyst at CMC Markets in Sydney.
“Obviously, this [stabilisation in the oil market] will take a long time. All agree that to achieve balance in the oil market will take 12 to 18 months. The decision on coordination of the supply reduction will simply cede share to other producers”, — said the source of Bloomberg.
Yesterday Bloomberg reported on the upcoming negotiations Russia and Saudi Arabia for oil.
The Agency, citing informed sources, said the Russian energy Minister Alexander Novak will hold on 16 February, informal talks with Saudi counterpart Ali al-Naimi. It is planned that the conversation will be joined by the representative of Venezuela, Eulogio del Pino.
In the beginning of February we were taking a tour of the key exporters of hydrocarbons and has proposed to freeze production at the current level. The Reuters sources pointed out that the initiative was met with understanding in Saudi Arabia, Russia and Qatar.
Officially, the Bloomberg Agency has not received confirmation of the meeting from the representatives of the Ministry of energy of Russia and Ministry of oil and mineral resources of Saudi Arabia.
Earlier, Riyadh has repeatedly stated that it is not going to cut production of hydrocarbons, and even the price of oil at $20 per barrel would be acceptable for the Kingdom. However, on 10 February, followed by a statement of the authorities of the UAE that OPEC members are ready to discuss the possible reduction of oil production. Against this background, oil prices February 12, increased by more than 10%.
Chief analyst at VTB24 Stanislav Kleschev warns that the quotes Brent has grown for three days at 16% and if during the negotiations with participation of Russian and Saudi representatives have not reached agreement on the reduction of production, the speculators will think about profit taking and then oil prices will fall.
According to data as of 10:50 Moscow time on 16 February, the price of a barrel of Brent crude on the ICE stock exchange was $35,23.