Oil producers, including top exporters Saudi Arabia and Russia, will meet in Doha on Sunday to discuss "freezing output around current levels in an effort to contain a global supply glut that sees some 2 million barrels of crude produced every day in excess of demand," Reuters reports.
This morning, Brent crude futures were at $43.92 a barrel at 9:03 GMT, slightly up on their last close. US West Texas Intermediate futures were also almost unchanged, trading at $41.56.
According to one analyst, however, the oil price is likely to rebound in the second half of 2016.
A close reading of Opec`s April market report reveals that while Opec "did not mention surging oil prices or sharp increases in exploration and production activity in their report [...] they implied it," says Brad Beago, on Oilprice.com.
Cannes Film Festival or Euro 2016? There’s still time to plan and book your own global adventure for 2016.
The combination of global growth and decreased production, in conjunction with Opec`s projections for supply and demand, could lead to a "massive rebound", he adds.
Other analysts are less confident, though, with some suggesting the Doha summit will be unlikely to significantly reduce the oil glut that has pulled down crude prices by as much as 70 per cent since 2014.
Instead of increasing prices, Barclays said an agreement on reducing production could simply "prevent prices from otherwise falling further", Reuters reports.
Oil price set for `massive rebound` - analyst
16 April 2016
Read: 835
The oil price remained steady this morning, with traders cautious about taking on new positions ahead of the meeting of major oil exporters in Qatar this weekend - although one analyst predicted crude prices may be set for a "massive rebound" in the second half of 2016.
