Tuesday, February 16, 2016 1:30:42 PM
5 key reasons oil is sinking after oil-output freeze
Oil-producing heavyweights on Tuesday took measures to address what has been a protracted plunge in crude prices. Saudi Arabia, Venezuela, Russia and Qatar all got together in Doha and decided to freeze production at January levelst, but the devil is in the details and the agreement is far from perfect, according to analysts.
Here are some crucial points traders and investors are weighing as they factor the long-term effect of the output freeze:
1. It is a production freeze, not a cut
2. Production is frozen at January levels, which was already very high
3. The big caveat—winning over Iran and Iraq
4. More room for the U.S.
5. Higher prices could undercut demand
http://www.marketwatch.com/story/5-key-points-to-know-about-the-oil-output-freeze-2016-02-16
Oil-producing heavyweights on Tuesday took measures to address what has been a protracted plunge in crude prices. Saudi Arabia, Venezuela, Russia and Qatar all got together in Doha and decided to freeze production at January levelst, but the devil is in the details and the agreement is far from perfect, according to analysts.
Here are some crucial points traders and investors are weighing as they factor the long-term effect of the output freeze:
1. It is a production freeze, not a cut
2. Production is frozen at January levels, which was already very high
3. The big caveat—winning over Iran and Iraq
4. More room for the U.S.
5. Higher prices could undercut demand
http://www.marketwatch.com/story/5-key-points-to-know-about-the-oil-output-freeze-2016-02-16
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