Oil prices fall sharply Monday morning.
Brent May oil are $ 39.74 a barrel, down 1.6 percent in today’s trading. WTI April oil goes back 2.1 percent to $ 37.69 a barrel.
Iran up into two, need four
The development occurs according to Reuters by statements from Iran’s Oil Minister Bijan Zanganeh the weekend that the country will not freeze production before it is up to four million barrels per day.
Iran’s exports are expected to reach half of this, ie two million barrels, in the Iranian month that ends on March 19 , up from 1.75 million barrels the previous month. Zanganeh shall also meet the Russian oljemininsteren Alexander Novak in Tehran today, according to several news agencies.
Saudi Arabia’s production remained stable 10,220,000 barrels per day in February, and thus seems to have remained at a preliminary agreement with some other manufacturers to freeze production this month, said a source in the industry said.
– A lose-lose situation
Meanwhile, warns Morgan Stanley that high production and weaker growth in the world economy will prevent a sharp rise in oil prices.
– oil prices seem to have bottomed out, although they seem to remain quiet out this year, before they begin to move upward in 2017, the bank wrote according to news agency in a note, where it also adds that cheap oil has not ensured the vekststimulansen many had hoped for.
– When oil prices fall below production costs, will the income effect for consumers will be lower than manufacturers’ costs, and lower oil prices will be a lose-lose situation, it added.
Possible meeting in April?
Monday comes also reports that an oil meeting will probably take place in Doha (Qatar) or Russia.
The source is OPEC delegates from Gulf countries, informs Bloomberg according to TDN Finans.
No country has been invited yet, and it should be a possibility that the meeting did not even take place – if no major manufacturers participate or if the meeting occurs agreed to freeze production.
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