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The
largest producers, including Saudi Arabia and Russia, are
scheduled to meet to finalize a deal reached in February to
freeze oil output at January levels aiming to bolster oil
prices.
However, Iran, whose oil production was restricted by
international sanctions imposed over its nuclear program, is
unlikely to join the freeze as it aims to raise its output to
its pre-sanctions level.
Iran's resistance to a freeze is likely to "be taken by the
doubters as proof that the lengthy pre-summit negotiations
failed to get the message across to Iran," Sberbank CIB analysts
wrote in a note to clients.
"Nevertheless, a deal like this could still result in initial
relief," they said. "Our concern is that over time the deal
would run the risk of disintegrating as countries face a reduced
incentive to stick to it."
"However, we doubt (oil prices) will reach much higher and would
consider taking profit at this level or a little above."
They said that early optimism or relief over any deal could see
Brent crude oil futures <LCOc1> test $45 per barrel.
Brent was trading at $44.17 at 1010 GMT on Wednesday.
(Reporting by Vladimir Soldatkin; editing by Katya Golubkova and
Jason Neely)
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