In the near term, the market will monitor very closely the movement of the U.S gasoline and crude stock prices. Expectations for higher crude demand in the second half of 2016, coupled with a decrease in availability, are leading analysts to conclude the current bear market is only temporary, and oil prices will rise later in the year, several OPEC members want to revive the idea of setting new limits on production — a subject raised but quashed in April when cartel members met in Doha. At the time, Saudi Arabia said market forces were helping to reset supply and demand back toward a rebalance. Iran also rejected the idea, saying it would continue to produce until it reaches the pre-sanction level.But this isn’t the first time OPEC has promised to talk about restoring stability and order to the oil market. After all, major oil producers failed to reach a pact to freeze production levels at a meeting in Doha, Qatar earlier this year. Market participants have also become extremely bearish as can be seen in the recent trading.. a report says from the Commodity Futures Trading Commission Commitment of Trading. As such, this price-bullish news could also have forced speculative traders out of short positions, exacerbating the moves higher for crude-oil prices. Of course, comments from OPEC’s al-Sada, who is also Qatar’s minister of energy and industry, included some other price-supportive views such as expectations for higher oil demand in the third and fourth quarters. Al-Sada also said that the recent decline in oil prices is only temporary and has come as a result of weaker refinery margins, inventory overhang and the timing of the U.K. decision to exit the European Union.
– “They talk more than they do”, said Vivek Dhar, commodities strategist at Commonwealth Bank of Australia…
J. Mason ♦