The recent free fall of oil prices made the global economy in to threat. Prices were down by as much as 3% and were trading at below $30 per barrel. But the recent correction was driven by news that Russia has decided to talk to OPEC members about global oil production cuts that could help to increase oil prices. On the other side there is unconfirmed news that Saudi Arabia and Russia are making approaches to one another as regards a joint bid to reduce the oversupply.

Still, analysts believe that any kind of agreement like this is highly unlikely as OPEC's major producers intend to keep production high to secure a more market share.

For longer term perspective, current oil price level is certainly too low for sufficient oil to be produced in order to meet further rising demand. According to the state Chinese oil corporation CNPC, oil demand in China is set to climb by 460,000 to 11.32 million barrels per day in 2016. Moreover, the removal of sanctions against Iran is not helping the overall situation and thus the outlook for oil is likely to remain weak.