Saudi Arabia previously said it would join a production freeze deal if Iran agreed to curb output. However, Tehran has maintained that it should be allowed to raise production to previous levels before the introduction of Western sanctions over Iran’s nuclear program, instead arguing for individual-country production quotas.
Consequently, market observers believe that the failure of a deal reflects political differences that are undermining the organization, notably between the Sunni-led kingdom and the Shi’ite Islamic Republic.
“Verrone also points to a long-term chart of oil that shows that crude is being “stretched” over its 200-day moving average, a smoothing mechanism which he believes will be “rechallenged” to the downside for oil,” according to CNBC.
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United States Oil Fund