Tuesday the market moves up more than 2% due to a rally of oil price. Currently the markets are more bullish on the coming conference between Cartels on the reduction of output in this year. Thanks to the shell-oil technology, the energy sector of US gets boomed in the past 6 years when the oil price makes the profits desirable. On the contrary, the oversupply of oil destroyed the commodity market and also made huge impacts on the equity market for 2015.
Russia’s energy minister said Tuesday that a “critical mass” of oil-producing countries had agreed to freeze oil production, and that a final decision on such a measure would be taken this month, state news agency TASS reported.
Also on Tuesday, the United Arab Emirates’ energy minister said “everyone should move toward freezing production whether they like it or not,” due to current low oil prices.
Russia, Saudi Arabia, Venezuela and Qatar announced last month that they were willing to freeze production at January levels. However, market participants are unsure whether the measure would help shrink the global glut of crude, as production was high in January and Iran has not said it would participate in the deal. Iran’s oil output is expected to rise this year now that international sanctions were lifted.
Light, sweet crude recently traded up 77 cents, or 2.3%, at $34.52 a barrel on the New York Mercantile Exchange. Brent, the global benchmark
Traders are also waiting on weekly U.S. inventory data due Wednesday. U.S. crude stockpiles are at their highest level in more than 80 years, and another inventory increase could weigh on prices.
Gasoline futures recently fell 1.2% to $1.3054 a gallon. Diesel futures rose 1.8% at $1.1129 a gallon.