Although Russia and Saudi Arabia considered the proposed plan of the OPEC to freeze production, oil futures didn’t end there. Two of the kingpins of OPEC hoped for the solid participation of all the oil giants, but their expectations slowly turn to dust as Iran disagreed to join the carpet.
Iran rejected the idea of the OPEC and reiterated that freezing their output was far from reality unless they will have an output of 4 million barrels per day or 600,000 barrels, surpassing their output the previous month.
Based on the recent data released by the OPEC, Russia produced as high as 11.08 million barrels per day in February. The figures even surged as the production of the country on a daily basis has increased to 10,000 barrels.
On the other hand, Saudi Arabia produces roughly 10.14 million barrels per day with a rise of 14,000 barrels on its daily output.
OPEC said in a report that the global demand for the commodity will hit around 94.23 million barrels per day in the whole year of 2016. Meanwhile, the non-OPEC members oil supply is expected to slide around 700,000 barrels a day.
On the previous sessions, oil swung up and down due to several factors. But just recently, oil extended its gains as the U.S. benchmark hit its new 3-month high. On the New York Mercantile Exchange, crude oil for April delivery climbed at $39.64 per barrel.
For the record, WTI prices increased in the last 20 days for almost 47 percent from the first half of February until the first week of March. Similarly, WTI surged for more than a month last year where the analysts concluded that oil hit the bottom.
Experts believed that the accumulated gains will not last. Oil prices have dropped below SMA50 at 36.80, a clear indication of a negative direction.
In general, the global market is still flooded and the condition of oil prices will remain until the end of the year. Given the situation of the commodity , it is probably heading for the bearish road.