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Oil prices jump as big oil producers set to meet
Oil prices gained over 4 per cent on news that Saudi Arabia’s oil minister Ali al-Naimi is going to meet his Russian counterpart today and also possibly with Qatari and Venezuelan oil ministers. The meeting that will take place in Doha, raises expectations that some OPEC members may push for action to boost oil prices.
Oil prices extended gains after reports of the meeting, with Brent crude up 2 per cent near $34 a barrel, while US benchmark West Texas Intermediate rose above $30 a barrel for the first time in a week.
Crude-oil prices have plunged more than 70% since June 2014, falling below $27 a barrel last week, largely because of surging supplies from the U.S., Russia and members of the Organization of the Petroleum Exporting Countries like Saudi Arabia, Iraq and Iran.
Talk about co-ordinated action has included proposals to lower output or to freeze production near current levels, but any agreement faces a number of barriers.
But skepticism dominates among market watchers, after talk of possible production cuts from both OPEC and non-OPEC players over recent weeks have come to naught.
Some experts, however, believe that the extent of damage done by low oil prices will be difficult to unwind even if prices increase further.
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