Oil slides again despite Canadian fires as Saudi appoints new minister

Discussion in 'Market News' started by Lily, May 9, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Analysts say chances of a deal to cap output have receded

    Oil prices have lost their early gains, hindered by renewed strength in the US dollar.

    Brent had climbed as high as $46.48 a barrel in the wake of the continuing Canadian wildfire in the country’s oil sands region, which has hit more than a million barrels of daily production.

    [The Canadian wildfire] is obviously a temporary factor so it won’t have a long-lasting impact on prices. Both contracts eased off their highs by midday in London.

    [The departure of] Saudi’s Ali al-Naimi as head of the country’s oil ministry may be a reason why oil prices have failed to maintain their early advance. Al-Naimi’s successor, Khalid al-Falih, the former head of the state-owned Aramco, is largely expected to follow the strategy of protecting the nation’s market share. This has further reduced the likelihood of an oil-freeze deal with other large non-OPEC producers like Russia.

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