Commodity rally won't last as fundamentals unchanged: analysts

They see full recovery in oil market only in H2 this year or next; current US$40 price proves to be sticky threshold

Published Wed, Mar 9, 2016 · 09:50 PM

Singapore

Oil prices clung to the US$40 threshold on Wednesday, cheered by a possible agreement between the world's largest oil producers to freeze output, even as analysts warned that the commodity rally in recent weeks is not sustainable.

Supply and demand fundamentals in commodity markets have remained largely unchanged, they said, and a full recovery in the oil market would probably take place only in the second half of this year or next.

The world's largest oil exporters within and outside Opec (Organization of the Petroleum Exporting Countries) are planning to meet in Moscow on March 20 to discuss a possible output freeze, Reuters reported.

Iraqi Deputy Oil Minister Fayadh al-Nema reportedly told state newspaper Al-Sabah that the country was "prepared to cooperate to discuss a plan to freeze production levels with the most prominent oil producers in the world and to guarantee that Russia and Saudi Arabia, the biggest oil producers a…