Uncertainties persist in the oil market ahead of the fateful decision of the OPEC+ members regarding a widely discussed reduction of oil production. The market keeps fluctuating in this context, while prices are highly sensitive to different rumours and speculations. Volatility stays strong in the market on Thursday.
Following the recent fruitless attempts to take roots above $63-handle, Brent prices plunged to some $60.16 today. It seems that prices are likely to keep sliding further below $60 handle.
The rumours that the cartel committee suggested a 1 million bbl reduction as well as agreed on new measures have been rejected, and even before the market has responded to them.
However, the market expectations have been dramatically affected by the statement made by Iran's minister Bijam Zangeneh today. Specifically, he stated that Iran finds the price range at $60-70 acceptable, and thus they are not going to take part in the deal until illegal sanctions are lifted. On the one hand, this position of Tehran failed to surprise the markets much, but risks that it can seed doubts among other exporters and they can refuse from cutting the oil production.
This means that the oil market stays highly uncertain, so there is no chance to predict the further movement of oil quotes this week. Nevertheless, OPEC+ still can disappoint investors, as the market expert believes.