World oil prices are heading for a third consecutive weekly gain.

Key OPEC members will meet with other producing countries in Russia this month to discuss freezing production, pushing oil prices toward their longest weekly winning streak in over six months.

US WTI crude oil prices rose nearly 1% on the afternoon of March 4th in New York, bringing their three-week gain to 18%. Nigerian Minister of Oil Resources Emmanuel Ibe Kachikwu said yesterday that prices will remain highly volatile ahead of a meeting scheduled for March 20th. Production cuts will help stabilize the market and push prices higher in the second half of the year, according to Daniel Yergin, vice president of consulting firm IHS.

Nevertheless, year-to-date, oil prices are still down 6% due to a persistent global oversupply amid rising US inventories and the prospect of increased Iranian exports after sanctions were lifted. Mid-last month, Saudi Arabia, Russia, Qatar, and Venezuela agreed to limit production to January levels to address the oversupply issue.

Iran is not yet ready to restrict production. Photo: Daily Star

"Investors can't be optimistic right away, but at least prices have stopped falling. It will be very difficult for countries to reach an agreement to limit production. The market doesn't expect Iran to comply. And large reserves will also make it difficult for oil prices to rise sharply," said Ric Spooner, head of analysis at CMC Markets.

WTI crude oil is currently priced at $34.60 per barrel. Meanwhile, Brent crude is at $37.10. Brent crude has risen for five consecutive sessions – its longest streak since November last year – and has also increased by 6.4% this week.

Although Russia has indicated its readiness to participate in negotiations, the time and location of the meeting are still under discussion, according to a statement on the Russian Ministry of Energy's website. Kachikwu also did not specify whether Iran would participate in the talks.

Meanwhile, global oil production and inventories continue to rise. The Organization of Petroleum Exporting Countries (OPEC) produced 33.06 million barrels per day in February. Saudi Arabia's output remained unchanged, while Iran pumped an additional 140,000 barrels per day.

US crude oil inventories rose by 10.4 million barrels last week, to 518 million. This is the highest figure since 1930, according to the US Energy Information Administration.

According to VNE