So it goes with the oil price Friday – OBI Online

Brent oil rises Friday 2.44 percent to $ 35.65 a barrel, while WTI oil is up 2.17 percent to $ 33.94 a barrel.

In comparison, a barrel of North Sea oil traded for $ 34.65 a barrel at the close of trading on Thursday.

Prices for oil contracts continues thus Thursday’s upturn, despite widespread skepticism about Russian statements that Opec and other manufacturers will be able to meet to discuss production cuts.

– If Saudi Arabia and Russia should reach an agreement on reducing production, it will only allow for Iran to fill the void. Price increases as this tends to be short-lived, and with little chance to last, says analyst at IG in Melbourne, Angus Nicholson, to Bloomberg News, according to TDN Finans.

In a client note Thursday night denotes Barclays reports of an Opec cuts as “nothing more than an attempt to turn around market sentiment,” and does not expect a meeting between Russia and Opec will help change the imbalance in the physical oil market.

“There is a huge difference between a meeting to exchange views on the state of the market, and a meeting to arrange production cuts. This will probably be the first type of meeting, “said the note. According to the news agency.

Barclays predicts that the parties will come together to ensure that there is a light at the end of the tunnel, that not -Opec production already falling and expected to fall further, and that if they can just get through the first half, the balance will begin to return.

“We see it as a difficult sales job for Saudi Arabia (and Russia, for that matter) to reach agreement on production cuts, while Iran continues to increase its production. In addition to the risk of losing market share to its archrival, a rapid, strong rise in prices also entail the risk of a repetition of the second quarter last year, with a delay in the balancing process in the oil market, “writes Barclays analysts.

The brokerage maintains according to TDN Finans that it will be necessary Brent prices below 40 dollars per barrel in “at least two quarters”, for the balancing process should be in place so that it opens up for a more sustainable recovery in prices .