Market Insider

This is what could make oil's rally fizzle

Oil prices will rise, supply fall: Oil analyst

Oil's rally could fizzle if there's no agreement among major producers for a freeze later this month, and the ripples could be felt across global markets.

"It totally matters. The market goes up and down by who said what last," said John Kilduff, partner at Again Capital, of the meeting. "I don't think there's going to be a deal but it makes a market here."

Crude futures surged more than 5 percent Wednesday, helped by a weaker dollar and a drawdown in U.S. supplies by 4.9 million barrels when the market expected a build. West Texas Intermediate futures settled at $37.75 per barrel.

Oil also got a lift this week from comments made by Kuwait's OPEC governor, Nawal Al-Fuzaia, who on Tuesday said all signs point to an agreement among producers to hold output levels at the April 17 meeting in Doha.