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    Oil sector collapse follows IEA comments

    Oil markets have today undergone a dramatic collapse following comments from the IEA. 

    The International Energy Agency (IEA) has claimed next month's meeting of major oil producers may fail to deliver the far-reaching boost to the market that many analysts may be expecting.
    Set to take place on 17 April 2016, all 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC producers - including Russia and Venezuela - have been invited to attend.

    However, due to the fact that a freeze on production will make little to no difference for the majority of those in attendance at next month's meeting in Doha, the IEA believes markets may be disappointed by its outcome.

    Neil Atkinson, head of the IEA's oil industry and markets division, explained: "Amongst the group of countries [participating in the meeting] that we're aware of, only Saudi Arabia has any ability to increase its production.

    "So a freeze on production is perhaps rather meaningless. It's more some kind of gesture which perhaps is aimed ... to build confidence that there will be stability in oil prices."
    By the late afternoon (3.59 pm GMT, 23 March 2016) in European market sessions, US light crude prices had diminished by $1.37 from their position at the start of trading on Wednesday, to reach $40.08 per barrel.

    Meanwhile, Brent crude values had suffered a similar downturn, with a daily loss of $1.12 to $40.67 per barrel by the same time.

    File under: Brent, CFD, Crude, Energy, Oil, ThinkForex, Trading

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