The United States on Wednesday (March 16th) oil prices jumped nearly 6%, rose more than 2 U.S. dollars to 38.62 U.S. dollars / barrel, erase the past two days before the decline, major oil producers support meeting in Qatar, to discuss the frozen production plan, and last week, U.S. crude oil inventories rose less than expected.
In addition, the Fed today to maintain interest rates unchanged, and hinted that this year will be raised two times, rather than before the expected four times. This also supports the rise in oil prices.
"Low cost funds are always good for commodity markets, and the Fed has provided a new reason for the bulls to push up oil prices," said Kilduff John, a partner at Capital Again, an energy hedge fund.
The opening prices steady, before long said Qatar oil, the organization of Petroleum Exporting Countries (OPEC) and non OPEC members will meet in Doha in April 17th, to discuss the frozen production plan.
Qatar oil long said that about 15 OPEC and non OPEC oil producing countries to support the above plan. The country's oil production accounts for 73% of the world's total output.
Since the first proposed freeze last month, oil prices have rebounded from a 10 year low of about 50%, but because of the uncertain meeting time, the market trend shocks.
U.S. crude oil inventories hit a record high last week for fifth weeks, but only up 1 million 300 thousand barrels, far below expectations, according to data released Wednesday by the energy data association (EIA).
EIA also reported that over the past four weeks the U.S. gasoline demand increased by 6.4% over the same period last year.
However, the French bank Societe Generale lowered the price of crude oil is expected, said the situation continued due to excess supply. SG 2016 Brent crude oil price forecast down 4.38 U.S. dollars / barrel to $38.12 / barrel; 2016 WTI crude oil price forecast to $4.3 a barrel to $36.2 / barrel; expected in 2017 and 2018 the oil average price of $52.5 / barrel and $65 / barrel. SocGen said, in view of the fundamentals of oil market remains weak, we believe that the recent rise in oil prices slightly too large, the next is likely a slight retracement.