Oil prices likely to remain volatile in near future

Yesterday, Brent oil sharply rose by 7 percent to $34.5 per barrel, following comments made by the Iranian oil minister Zanganeh. WTI price was just short of 6% increase, hovering towards $31 per barrel mark. Oil prices are trading at Tuesdays level before the oil producing economies had agreed to freeze oil production at the January level. 

Zanganeh stated yesterday that Iran is willing to cooperate between OPEC and non-OPEC countries; however, there was no clear indication from him whether Iran was ready to sign the agreement and not increase its production. Previously, Iranian official's statements have claimed that Iran will be freezing its oil production only when it achieves its pre-sanction level again.

Since late December, the oil prices have fluctuated by at least 3.5%, this huge volatility is likely to weigh on the future performance of the price. So far the price trend is unclear amid rising volatility.