A steady climb for oil prices amid OPEC negotiations

Oil prices today remained stable as it held on to the gains it made at the end of last week as speculation was rife over the possibility that OPEC might cut oil production to combat a supply overflow that brought oil prices to a low. Brent crude remains at $33.36, an increase of 23 cents of Friday’s figure of $29.67. Oil analyst, Frank Klumpp from Landesbank Baden-Wuerttemberg in Stuttgart said that some traders will have their hopes up for a cut in Opec and Russian oil production.

Russia- who is not a member of OPEC said today that it was in talks with individual OPEC nations, Venezuela in particular, to discuss output cuts. At present Russia is not in direct talks with OPEC itself. Some analysts see the reaction to the markets by the undergoing negotiations as holding great promise. However, most analysts including The International Energy Agency (IEA) remain skeptical of a deal being reached to cut oil production. The latter may ring more true as Iran is increasing its oil output by 20 March to 1.5 million barrels a day from its current 1.3 million barrels per day. Within 24 hours Iran will be exporting approximately 4 million barrels to Europe. Meanwhile Shell, Chief Executive officer, Ben van Beurden said oil prices will likely stabilize later this year and that we can expect a bounce back in prices after it.