Saudi Arabia has called up to cut down the output; if Iran agrees to freeze its production is the news that has energized the oil market.
Some market experts are of the view that after this move, oil prices are expected to rally. Although the market today showed a mixed trend from US crude oil to go down by 5 cents while Brent crude rose by 0.59%.
After a drop in oil prices last month to below $40, the recent recovery of oil is a symbol that there is still room for more improvement in the oil market. Following the OPEC meeting in near future, the future of oil is likely to remain mixed until Saudi Arabia does not settle up the issues.
Dollar, on the other hand, faced a slight down when the crude oil rise which indicates that the market trends are not uniform and changes are uncertain until the end of the year.
Experts also predict a mixed behavior in the energy sector following the recent oil fluctuation. It has eyes on the decision of Iran on whether to accept or reject the offer placed by the Saudi Arabia which seems of great importance considering various tensions between the two countries, especially the Hajj issue.
Apart from Saudi Arabia, Qatar, Kuwait and the United Arab Emirates are also Gulf allies to this decision of cutting down of output. Saudi Arabia is the largest producer of oil and has faced huge pressure with the oil prices fall as it being the revenue generation tool for the country.
OPEC members are to meet in the International Energy Forum in Algeria to solve the oil crisis and negotiate for the best of all nations. Till the decision is not clear, the oil market is yet to remain uncertain throughout the month.