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    Analyst: 'If Singapore Meeting Goes Wrong It Could Be Really Bad for Oil Market'

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    Oil prices continued to tumble on Monday after last week's downward pull. The development comes amid reports about rising production in Russia and an increase in US drilling activity. Radio Sputnik discussed the factors affecting the price of oil with Greg McKenna, chief market strategist at CFD and FX provider AxiTrader.

    Sputnik: What are the primary geopolitical factors that are affecting the price of oil right now?

    Greg McKenna: Yes, it is a very interesting time for oil markets with the big OPEC and non-OPEC meeting on June 22. We've got a lot of confusion in the market as to whether or not the Saudis and the Russians are going to be able to engender an increase in production or a reduction in the production cap. It's not certain, it sounds like they want to go that way, but Iran and others seem to be pushing back.

    READ MORE: Politically-Motivated Oil Prices Could Help Improve Saudi-US Ties — Scholar

    Sputnik: Oil market analysts are also waiting for the historic summit between Donald Trump and Kim Jong-un. What effect, do you think, this summit will have on the markets?

    Greg McKenna: The North Korean issue is an important issue. Iran just this morning said, and this is kind of interesting for all markets, Iran has warned the [North] Koreans to be careful in what they agree to with President Trump, because, we know of course, he pulled out of the Iran nuclear deal. I don't think it is going to have too much impact on oil markets per se. Overall, in terms of risk sentiment, if it goes badly, after that abominable G7 meeting and the terrible tweets we've seen from the president and the anti-Canada tweets we've seen in the last 24 hours or so. It could be really bad for markets. And that would probably put downward pressure on oil and stocks and those kind of things. But we're all hopeful that at least his first meeting might progress toward some sort of denuclearization on the Korean peninsula.

    The views and opinions expressed in this article are those of the speaker and do not necessarily reflect Sputnik's position.

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    oil market, meeting, oil price, Democratic Republic of North Korea (DPRK), United States, Singapore
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