Crude oil blessed

Over the past week crude oil snatched gains and the price rocketed to highest level in 2016, while the US dollar continued to depreciate against the basket of major currencies.

US light crude were seen at $38.50 per barrel, which is the fifth consecutive weekly gain. And this is based on the hopes that the major oil producers will achieve agreement on production freeze. The weakened dollar also supported the "black gold", which peaked at $40.54 per barrel. OPEC leader Saudi Arabia and other countries of the organization, along with Russia will meet in Qatar on April 17 to discuss the floating idea of production freeze. 

The positive mood on the potential agreement strongly supported oil prices, but cutting the output could not neutralize the glut. However, this is seen as a good start in trying to stabilize the oil market, which gives impulse to the crude oil. Brent was also inspired and reached its highest value since early December at $41.60 per  barrel. Oil prices recovered with over 50% as quotes fell to 12-year lows under $26 for WTI and $27 for Brent.

It was a picturesque rally. But if we witness just cutting output along with shadows over r the neutralization of the glut, the possibility of renewing the depreciation remains in place.