Oil is deflating and registers falls of 8% after reaching shoot up 12% before a truce between Russia and Saudi Arabia. As reported by Reuters, two of the world's largest oil producers have agreed to cut their production by up to 20 million barrels a day, hitting the table. Now, investors are beginning to hesitate for lack of knowing the details of the pact.
The summit is being held virtually and takes place this Thursday after being originally scheduled for last Monday. Trump fueled prices last week by claiming that Russia and Saudi Arabia were about to close their particular price war.
"OPEC and its allies are thinking of a big cut to try to extend the oil rally," Again Capital experts assert in statements to the CNBC. "The meeting will be a" take it or leave it "for the crude oil market and a snip of 10 million barrels per day is the minimum necessary to stabilize this situation," he added.
Since RBC They are cautious and their analysts believe that "there are still many mines to avoid before a final agreement is reached." If an agreement is reached, some believe that oil prices will remain low because the demand destroyed by the outbreak remains very high.
"Get ready for another oil crash soon, just when market participants realize the real problem, which is dwindling demand, "analysts alert Rystad Energy.