Both OPEC and LME are dealing with unexpected price stability this morning.
Oil Output Falls
Organization of Petroleum Exporting Countries oil output has fallen in February from the highest monthly level in recent history, a Reuters survey found on Monday, due to a halt in Iraq’s northern exports and outages in other producers.
The survey also found stable output in top exporter Saudi Arabia, an early sign that Riyadh is delivering on a Feb. 16 deal along with Venezuela, Qatar and non-member Russia to freeze output and support prices, which hit a 12-year low last month.
The London Metal Exchange on Monday confirmed that it will explore the idea of capping warehouse rent because the proposed rises from April are much higher than in previous years.
The LME said it plans to publish a discussion paper outlining its options on “Charge Capping” in mid-March. “The LME is proposing, at a minimum, to explore the possibilities for implementing a longer-term solution to high charges.