Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Failure of oil producers to agree over a production freeze just for six months to begin with, shows the fragile nature of any coalition among global oil producers. Saudi Arabia did exactly, what Saudi Prince Mohammad bin Salman, said earlier in the week, speaking to Bloomberg that Saudi Arabia will not participate in any deal without involvement of other key producers, such as Iran.
Failure of the producers to freeze production a January level, till October, likely to send shockwaves through oil market as recent long position likely to see faster wind up.
Both Brent and WTI benchmarks were down more than 5% this morning to begin with but now has trimmed the loss a bit, partially due to 60% drop in oil output from Kuwait. Brent is currently trading at $41.3/barrel, down -3.9% and WTI is trading at $38.5/barrel, down -4.6%.
According to an independent oil analyst from the gulf said that this time around, Saudi Arabia’s rhetoric and rivalry with Iran will be more costly for global oil market. Majority of the oil chiefs were looking disappointed, who were eagerly expecting a deal.
Falah Almari, Iraqi oil chief, couldn’t hide his disgust, “We are very very disappointed…….this will affect the price and our earnings. We wanted a deal.”
Many of Saudi Arabia’s own gulf allies were disgusted by the Kingdom’s decision and by the end of meeting, they were asking, why the Saudi’s came in the first place if they are not up for the deal.
Although, the deal wasn’t going to restore balance in the oil market but it gave hope and fuelled optimism for cuts in future but a failure now risks pushing oil back to $30/barrel area.
Failure on the other hand has beenn beneficial for risk off assets
