The price of oil jumped after Russia and Saudi Arabia reached a deal to look for ways to stabilise the oil market.
The announcement was made by the countries' energy ministers, Alexander Novak and Khalid al-Falih.
The price of Brent crude oil initially jumped by 4% but then pared gains to stand 1% higher at $47.31 a barrel.
A statement said the plan was to support the "stability of the oil market... ensuring a stable level of investment in the long term."
At the start of 2016 the price of oil fell to its lowest level in nearly 13 years due to a production glut and is still far below the $110 a barrel price recorded just two years ago.

Mr Novak said the agreement, which might include attempts to limit oil output, was a "historical moment" between members of OPEC, which is the traditional oil producers' cartel, and non-members, of which Russia is one.
He added that Russia was willing to join an oil output "freeze".
'Getting better'
The outline agreement, to set up a joint task force, was publicised at a news conference at the G20 summit taking place in the eastern Chinese city of Hangzhou.
However the Saudi Arabian minister Falih said that freezing output was not "necessary" now.
"Freezing (production levels) is one of the preferred possibilities but it's not necessary today," he told the Saudi-owned Al Arabiya TV after the cooperation agreement was unveiled.
"The market is getting better and we have noticed that prices reflect this (improvement)," he added.
Despite this immediate divergence of view, Mr Novak told reporters that he favoured choosing a month, from the second half of this year, which would be the benchmark for a production freeze.
He added that Russia would accept any month for this purpose, and that it was important for other countries to support the proposal, possibly including a cut in production.
'Watching the market'
Strategies to keep oil prices high by limiting production are usually the preserve of OPEC and are often not successful.
However Russia and Saudi Arabia are the world's two largest oil producers.
The two countries' ministers' will meet again later this month and again in October and November.
The agreement to talk about a deal, despite the lack of detail, was welcomed by two other oil producers.
"This dialogue confirms that the main oil producers are watching the oil market... to help achieve stability," said Kuwait's acting oil minister Anas al-Saleh.
The UAE energy minister Suhail al-Mazroui tweeted: "UAE, as an active and responsible member of OPEC will always support any joint efforts which will benefit market stability."

Source: http://www.bbc.com/news/business-37276710

Ladies and Gents, here comes the beginning of the end of this round of bust. With the current fundamentals as well as the state of things geopolitically, we will experience some northwest-ward movement on the price quantity plane. The rebalancing continues but will proceed at a relatively accelerated rate.
Let's see them put ink to paper, and everything else follows.

Cc: lalasticlala OAM4J Mynd44.

Good moves. They just woke up now from a long slumber

Donexy16:
Good moves. They just woke up now from a long slumber

Prisoners dilemma bro, prisoners dilemma, everyone does what seems best for themselves at the expense of the overall group (detriment of the market).

NavierStokes:


Source: http://www.bbc.com/news/business-37276710

Ladies and Gents, here comes the beginning of the end of this round of bust. With the current fundamentals as well as the state of things geopolitically, we will experience some northwest-ward movement on the price quantity plane. The rebalancing continues but will proceed at a relatively accelerated rate.
Let's see them put ink to paper, and everything else follows.

Cc: lalasticlala OAM4J Mynd44.

Break it down please...

Donexy16:



Break it down please...

Okay bruv, basically

With the supply kept at current levels (production freeze) or reduced levels (production cut) or natural decline due to the severe cuts in capital spending across the industry (production cut), we will experience a westward move of the market supply's curve, also IEA predicts growing demand (slow but at least still a growth), we will see a rightward adjustment of the demand curve.
Overall the market experiences a northwest movement of the equilibrium position, this is a higher price for the commodity, although some reduced volume in the market. The rate at which the equilibrium will be stained will be influenced by how fast the storage at Cushing, China's secret stock tanks etc are depleted.

There's a lot involved in moving these curves but the overall effect is what I've just described.