Iran is claiming that OPEC will “introduce a new solution” for raising oil prices, and it doesn’t involve further cuts to output (via Bloomberg). The group says it’s already implemented 80% of its agreed upon cuts in production, which should have helped prevent a price free fall. Any ideas as to what the solution will be when they meet on March 15?
In other oil news, Bloomberg reports that we need oil to finish high today to prevent a big price drop:
The drop yesterday has left crude below its five-day moving average of around $43.16 a barrel and eight-day average of about $41.58, PVM said. Oil last traded on the New York Mercantile Exchange at $40.85 as of 10:37 a.m. London time.
“Only closes above the daily moving averages and above the Gulf War One high would negate the negative sentiment,” London- based PVM said.
If crude settles under $37.65 a barrel, the lowest price for the April future since it became the front-month contract, then prices may plummet as far as $32.70, the lowest level for the front-month contract this year, PVM added.
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