War is over if you want it. Crude oil prices closed above the 200-day moving average for the first time in 2 years on reports that Saudi Arabia and Russia had agreed to freeze production with or without Iran.
While the market worried about a report that Iraqi oil production hit a record high yesterday, it seems that despite the increase Iraq is ready for the ‘Big Freeze.” The potential for the crude oil freeze deal just went higher after it was reported that the head of Iraq’s state oil selling company said today that all of the world’s biggest producer nations must agree to freeze production to prop up the crude price, according to the Financial Times.
In the aftermath of the biggest point drop opening in the history of the stock market open, crude oil today is battling back. As European and U.S. stock markets even as china and Japan markets fall the crude market is trying to make a run higher and get out of the $30 per barrel handle danger zone.
Oil rises as Ramadi falls as this markets price action continues to defy the calls for an oil price crash. ISIS forced Iraqi security forces to flee the largest province in Iraq despite help from U.S. air support.