Crude oil is retreating over 1 percent on Monday after tumbling 4 percent on Friday partly due to concerns that Iran may not go along with a Saudi led requirement to curb its oil production along with other OPEC member nations that could serve to undermine a deal between OPEC nations and Russia at a joint meeting in Doha on April 17th.
On Friday Saudi Deputy Crown Prince Mohammed bin Salman told Bloomberg that the Saudi Kingdom would freeze its oil output production at January highs only if Iran and other oil producing nations agreed to curb theirs as well.
Iran is seeking to regain lost market share after restrictive sanctions ended in early 2016 across its oil industry.
A member of Iran’s oil and gas committee in Parliament told Iranian gas news information site Shana on Monday that Iran is determined to recapture its market share and will never cease to pursue its rights in this regard.
Iranian Parliamentary member Ali Iranpour reacted on Monday to Friday’s comments from Saudi Prince Mohammed bin Salmon about the proposed oil production freeze at January highs.
“There is a precondition for Iran to join the production freeze plan, and that is restoration of its share in the global oil market and reaching pre-sanctions levels,” Iranpour told Shana news agency.
“No country can prevent Iran from restoring its oil rights and Tehran will never cease to persist in the strategy of regaining its oil market share. Iran’s market share needs to grow proportionate to its capacity and rights” Iranpour added.
Brent Crude is currently down over 8 percent since reaching a 4th month high in late March.
The Week Ahead
Investors have another week before corporate earnings season begins next Monday April 11th with aluminum maker Alcoa reporting after the closing bell.
This week investors won’t have a lot of new economic data emerging in the market but will be paying close attention to Fed minutes released on Wednesday from the Fed’s March 15-16th monetary policy meeting that ended on a dovish tone with Fed members projecting 2 interest rate increases in 2016, down from a projection of 4 rate increases at the Fed’s meeting in December, combined with dovish remarks at the press conference from Fed Chair Janet Yellen who signaled a cautious tone while citing global headwinds.
Some of the other economic data released this week includes Factory Orders for February released on Monday.
Economists from briefing.com forecast a decline of -1.8 percent after rising 1.6 percent in January.
ISM services for March will be reported on Tuesday.
Full Economic Calendar
Monday- Factory Orders (Feb.)
Tuesday- ISM Services (March), Trade Balance (Feb)
Wednesday- FED MINUTES (March 16th), Crude Inventories. MBA Housing Index
Thursday- Initial and Continuing Jobless Claims, Consumer Credit (FEB.), Natural Gas Inventories
Friday- Wholesale Inventories (FEB).