FX.co ★ Traders eye oil producers meeting in Algeria

The current week is crucial for the oil market as the long-awaited meeting of crude producing nations is taking place in Algiers, Algeria, where the world's largest producers discuss ways to limit output.
Traders are keeping a close eye on any report on this meeting.
At the end of last week, oil prices fell sharply after Reuters reported that Iran had rejected the proposal of Saudi Arabia to limit its oil output in exchange for Riyadh freezing its production at the current level of 3.6 million barrels per day. After the report was unveiled, prices plunged by more than 3%.
Meanwhile, experts say that the meeting in Algiers will take place on the back of not so good fundamentals. Over the last month, the supply glut has increased threefold, from 200,000 barrels per day to 600,000 barrels per day.
Russia boosted production to record levels, Saudi Arabia increased its output, Libya and Nigeria recorded an oil output increase amid restoring of disrupted supplies. Even if the countries reach a compromise and freeze oil production at current levels, it will hardly help prices go up.
The previous meeting of oil producing nations took place in Qatar. Then, the parties failed to reach an agreement as Iran was ready to freeze output only after reaching pre-sanctions levels of production. Today, Iran’s daily output is 3.6 million barrels, meaning a potential positive outcome of the meeting.