Gulf executives are a bit charged up today, as Saudi Arabia and Russia was able to agree over production freeze at January level and Saudi Arabia's all powerful oil minister called the meeting a success. Whether the deal gets implemented which we consider to be a punitive one, due to the fact even at current production level oil market is floating with 2 million barrels of surplus oil per day, will only be assured in time. Nevertheless that isn't preventing the charged up gulf delegates from positive commentaries.

One of the senior OPEC delegates gave a glimpse to the future actions to Financial Times -

• After today's production freeze decision, gulf members will expand their effort to other countries. Venezuela would be meeting with Iran and Iraq tomorrow and will also try to bring in other OPEC and non-OPEC countries from Oman to Kazakhstan.

• Next step would be to assess if they need to go beyond production freeze. It was highlighted that as of now, production is shrinking and demand is moving up.

Next key thing to watch out will be outcome of the meeting with Iran. Iran is the country, where production is expected to rise as much as half a million barrels this year.

WTI is currently trading at $29.7/barrel and Brent at $4.2/barrel premium.