On Tuesday, crude oil prices demonstrated a descending movement, which put the global number one commodity on track for its fifth downbeat trading session in a row. The decrease was mostly driven by an upcoming April’s gathering reportedly devoted to the global oversupply.
May West Texas crude futures dropped 1.1%, trading at $38.94 per barrel, May Brent oil futures lost 1.2%, hitting $40.39.
By the way, oil surged in March, following expectations that the OPEC members as well as other major producers are going to agree on a plan to stabilize production in Qatar, on April 17. Nevertheless, doubts arose later.
To generate a true bullish shock, the group would require going to a step beyond freezing production to cutting it, that’s what Saudi Arabia has tried to rule out.
Currently market participants see huge potential for the market to start losing confidence in the production freeze idea ahead of the gathering, including extending beyond April 17 if the OPEC members fail to ensure a long-awaited bullish surprise.