Oil surges as oil ministers agree on Venezuela’s proposal

Oil advanced by 6% in the morning session, continuing the recovery it had begun at the end of the previous week. Brent crossed the $35 per barrel mark, while WTI edged up to $31 per barrel, both recording their highest price levels since the beginning of February. The reports of the oil ministers meeting held in Qatar aided the oil price to soar. As announced, Venezuela's proposal to hold production levels at January level is likely to be implemented.

However, it is still unclear if this proposal will help to reduce the oversupply, as Iran and Iraq's consent will be required on the agreement. Last year, Iraq was accountable for the increase in OPEC production and reports suggest it is planning to expand its oil output further this year.

Separate meeting will be held with Iran and Iraq as they were not present in today's meet.