During Monday’s Asia trade crude oil futures froze close to their year’s highs, reacting a recent report from the IEA that crude prices have just reached their bottom.
In New York, oil futures lost 9 cents, trading at $38.41 per barrel. Additionally, in London oil gained 6 cents at $40.50 a barrel.
Currently the oil market is perfectly supplied by funds as well as flows. Moves come on the heels of a vivid surge, as Brent boasted a 45% from its year’s low of below $28. The revenues have been powered by supply reductions throughout the world, not to mention the probable joint supply freeze by key oil exporters.
In Friday’s report, the Paris-based IEA disclosed that the OPEC had already cut daily output by approximately 90,000 barrels because of obvious supply outages in Nigeria, Iraq and the UAE.
Over the weekend, the oil minister of Iran told the country is reluctant to join an output freeze until the country’s own daily output surge to at least 4 million barrels. By the way, some financial analysts stress crude prices might have found a new equilibrium after the recent soar.