Saudi Arabia wants an oil price of $100

Saudi Arabia oil minister Khalid al-Falih and Russian energy minister Alexander Novak participated in a joint conference in Riyadh.
It became clear that the leading oil exporter, Saudi Arabia, would have been happy with a rise in the price of oil to 80, and why not even to $100 a barrel. This was accepted by investors and analysts as a sign that we will not see a change in OPEC's production constraints soon.
OPEC, together with Russia and several other leading manufacturers, began to jointly reduce oil production in January 2017 in an attempt to stabilize the cost of raw materials. They extended their agreement by the end of this year.
Recently, however, speculation is increasingly becoming among oil analysts that these measures will continue next year.
Over the past year, Saudi Arabia has become one of the main supporters of restrictive measures in the industry that will lead to a rise in the price of oil.

The situation with OPEC's production limits becomes even more bizarre

Do you remember that the OPEC countries agreed to extend their production restrictions by the end of the first quarter of 2018? And instead of jumping, the price of oil starts with their sharp depreciation...
Apparently, market participants still had concerns that OPEC countries would not be able to meet the accepted restrictions. And they were right. It became clear that in May the cartel actually increased its production.
The situation becomes even more bizarre in June. OPEC production again exceeds production constraints, pointing to the worst coordination between countries over a long period of time.
According to data from the International Energy Agency, world production rose by 720,000 barrels per day in June. Saudi Arabia, the largest producer within OPEC, produced more oil in June, a month earlier.
More oil has also produced by countries that are not officially involved in OPEC, such as Nigeria and Libya.
A total of 21 OPEC members reached an agreement at the end of last year, which aimed to cut production by 1.8 million barrels. The purpose of production cuts was to raise the price of oil. Low raw material prices have largely become a reality as a result of the rising production coming from the United States.
But, there is still good news about oil. MEA forecasts an increase in oil consumption of 1.5 million barrels per day in the second quarter, compared to one million barrels in the first three months of the year.

USD/CAD

At the end of yesterday's trading session, Canadian currency suffered significant losses, which couldn't help even the decision of the Bank of Canada to keep the main interest rate unchanged at 0.5%. The pressure on the currency strengthened by regulator's comments regarding the low inflation, as well as the negative effects of the high currency rate with which it's harder to fight for domestic producers. It should be noted that the pair USD/CAD had a reasonable basis for the growth without soft rhetoric of the Bank of Canada. The main reasons due to which the Canadian risks continue to remain under pressure, is the contrast of the monetary policies of the Bank of Canada and the United States, a significant yield spread between bonds of these regions, the probability of keeping the correctional dynamics of the oil market, as well as the risk of revision of NAFTA agreement after Trump will take over as US president. The greatest potential impact on the USD/CAD pair is in the last two factors. Oil has traded in the local minima, and, apparently, plans to continue its downward rally. As for Trump, after the inauguration the market can receive the first signals of implementation of trade reforms, about which so much said Trump during his election campaign.

The inverse correlation between oil and the US dollar was interrupted - Goldman

Analysts at Goldman Sachs believe that the inverse correlation between the rate of the US dollar and the price of oil has stopped.
Over the last month, both the assets significantly rose against the background of "significant events", the bank said in the review.
According to the analysts, the dynamics of the oil is particularly unusual, given the strong exchange rate of the American national currency.
Goldman Sachs analyst Jeff Currie believes that if Russia will freeze the oil production, it will probably happen by January-February 2017. OPEC's strategy to protect its market share has remained the same, he said in an interview with Bloomberg.

Nordea: Oil prices hit the bottom

Oil prices have reached the bottom, assume analysts from Nordea Bank. According to their forecast, in the fourth quarter of 2016 Brent will cost about $50 per barrel, and for the full 2015 average price is $41 per barrel, reported Bloomberg. Quotations of the May futures for Brent crude on London's ICE Futures exchange increased by $1.1 (2.97%) - up to $38.17 per barrel.
Contract prices for WTI for April in electronic trading on the New York Stock Exchange (NYMEX) at this time increased by $0.95 (2.75%) - up to $35.52 per barrel.
Meanwile, Azerbaijan supported the initiative of Russia and a number of OPEC members to freeze oil production in 2016.