Oil prices tread waters as markets remain wary over the impact of any output freeze deal at this weekend’s oil producers’ meeting in Doha, Qatar.
Meanwhile, IEA stated on Thursday, “With Saudi Arabia and Russia already producing at or near record rates and very little upside seen apart from Iran any deal struck will not materially impact the global supply-demand balance during the first half of 2016.”
The dollar continued its rebound on Thursday morning after the U.S. Department of Labor reported that initial jobless claims last week fell by 13,000 to 253,000 equaling lows from early-March when the figure bottomed at the lowest level since 1973. The optimistic data followed the release of the Federal Reserve’s Beige Book on Wednesday afternoon, which provided indications that domestic wages are starting to increase while the prolonged downturn in oil production could be on the verge of coming to an end. Last week, the U.S. Energy Information Administration (EIA) said weekly crude production fell by 31,000 bpd to 8.977 million bpd. With the sharp declines, U.S. output dipped below 9.0 million bpd for the first time since October, 2014.
Moreover, the prices also await the US rigs count data along with the US economic releases for further momentum on the dollar priced-in commodity. While upbeat Chinese data failed to cheer the sentiment around the black gold.