Crude bounced from an earlier decline after comments from an Iranian official suggesting Tehran supported a meeting between the oil-producing cartel OPEC and other producers raised hopes — despite much skepticism in the market — that they could take action to support prices.
Brent crude was up 62 cents at $35.68 a barrel in afternoon trading Thursday. Prices have gained over 30 percent since falling to $27.10, the lowest since November 2003, on January 20th. U.S. crude was up $1.11 cents to $33.41.
Looking at the impact low oil prices will have on other asset classes, Morgan Stanley expects further weakness in the oil producer currencies, specifically the Canadian dollar and the Norwegian crown. Exporters of other commodities should generally move in line, including the Australian and New Zealand dollars.
With Brent averaging $30 in 2016, Russia will have to choose between the depletion of their sovereign wealth oil fund, or a 3–3.5 percent contraction in the economy this year, analysts at the bank said.