The rhetoric continues about an oil production freeze including OPEC and Russia, but it is just that, rhetoric.
In three weeks there will be another of a long list of oil summits, including OPEC and Russian, and other major world oil producers to try and put in place a freeze on production, or even a cutback, in order to try and stabilize oil prices.
Hopefully around the $50 per barrel level.
And even though the marketplace felt a tinge of excitement on the announcement that Russia and Saudi Arabia had signed an oil cooperation agreement this weekend, they again fell short of undertaking the production limits that some countries have called for.
But even if they did, and all the world’s major oil producing nations agreed on freezing production at these current levels, the freeze would be at record production that would only continue to oversupply and send millions of more barrels into storage and onto the open market.
And although some analysts are forecasting oil prices will stay at the $45-$50 level for some time, other well know oil specialists, notably Canada’s Josef Schachter, is forecasting oil to reach the low $30 level by the fourth quarter of this year.