On Tuesday, oil prices fell following concerns that the rally of the last two months may be coming to an end.

Since mid-February we have seen a 45% rise of oil price ahead of the meeting set for April 17, where Russia and other major suppliers are set to meet to discuss in Doha to discuss an output freeze to support prices.

Barclays has warned that prices could continue to fall to up to 25% if the net flows into commodities seen in January and February are reversed.

Ole Hansen, the senior manager at Saxo Bank has commented: “The amount of verbal intervention, which has obviously helped the market greatly over the past two months, combined with a production slowdown in the U.S., has probably taken (oil) as far as it can, now the market really wants to see some action,”

Brent Crude futures fell to $0.96 and stood at $39.31 at 1124 GMT, while U.S. crude CLc1 fell by $0.78 and is now $38.60

 

29/03/2016