Malcolm Graham-Wood
Independent Analyst
Further gains in the oil market yesterday as bulls pounced on any potentially good news around. It could easily be found after the meeting between Iran, Iraq, Venezuela and Qatar produced a seemingly positive outcome. Iran’s Minister said that the proposed production ceiling should be the first step to stabilising the market but added that they wouldnt be joining the process. Now call me an old cynic but what does this tell you? Probably that Iran can see that before long it will be producing as much as it can at the moment and what better way to disguise that than being seen to be the Opec nice guys…Either way the Saudi/Russian move are the first signs of, whilst not changing policy, of drawing some sort of line in the sand.
After the market closed the API stats were also positive for the sector showing a stock draw of 3.3m barrels when analysts estimates were foe a 3.9m build, whadda they know eh? In addition the numbers showed a draw at Cushing of 175/- which if echoed by the EIA stats tonight would be further good news for the sector.
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