Oil prices, after strong growth that began at the end of last week, plummeted.On Tuesday morning, Brent (April contracts) traded above $ 35 per barrel, WTI cost for delivery in March rose to $ 31 per barrel. But in the middle of Tuesday's North Sea oil has fallen in price to $ 33.9 per barrel and WTI with delivery in March to $ 29.7 per barrel.
The reason for active recovery in oil prices at the end of last and the beginning of the week was based on rumors of a meeting with OPEC-getters countries outside the cartel to discuss possible measures in the oil market to stabilize prices. According to some, it is a consistent reduction of production by 5%.
The optimism of investors rose after reports of today's talks in Doha, Russian Energy Minister Alexander Novak with Oil Minister of Saudi Arabia, Venezuela and Qatar. The news sent the quotes up.
Following the meeting, Saudi Arabia and Russia have agreed to freeze the production of oil in the January levels, to prevent further growth of supply of raw materials in the market and falling prices. The agreement was reached with the reservation and will only act in the event that other countries will not enjoy the situation and to increase production, while the major producing countries in the world, it froze.
After the information on the outcome of the meeting was leaked to the media, quotes plummeted. This is to be expected. In this situation, the market worked out a simple rule of "buy on expectations, sell at events." Large investors owned more information before she reached the general public. However, the fall in prices after the meeting does not mean that it will continue in the following days. On the other hand, an agreement to freeze production in the medium term will support oil prices and does not allow them to fall below current levels. If a number of countries to join the agreements Russia and Saudi Arabia, the quotes will get a new chance for growth.
Ruble in this situation would be to follow the oil quotations. Since the danger of falling oil prices below local minimums passed, and the ruble pair is unlikely to renew their tops. We anticipate that by the end of the month the ruble will be strengthened.