See no key verdict from crude meet; rally relatively short: ANZ

Officials from Saudi Arabia, Russia and key Organization of the Petroleum Exporting Countries (OPEC) members will meet on Tuesday to take a call on production (oversupply of crude), which in turn has been partly responsible for making markets volatile across the globe.However, there won't be any significant decision or statement coming out post meeting, says Daniel Hynes, Senior Commodity Strategist at ANZ Research.In an interview to CNBC-TV18, Hynes says the talk might be gaining interest, but data and actions seem to be opposite to what the market has been hearing.Meanwhile, Russia and Saudi Arabia will only stick to the strategy of protecting markets and this rally will be relatively short-lived on weak fundamentals, Hynes adds.Below is the verbatim transcript of Daniel Hynes' interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.Latha: How much would you give this buzz that there could be a meeting of Organisation of the Petroleum Exporting Countries (OPEC) and non OPEC producers in Doha. Does this have the potential to take crude even higher?A: The talk is gaining a lot of interest and it's clearly what the market is looking for but for the moment the key point is particularly Russia and Saudi Arabia continue to intimate that they are willing to cut production, for us the likelihood of that occurring is relatively low. The Saudi Arabia in particular is sticking to their strategy of expanding or protecting market share and their production so far has reached record levels and the same is Russia. So the data and the actions of those producers seem to be completely opposite to the talk that we are hearing in the market. So until we see some evidence of those cuts, this rally is going to be relished relatively short-lived.Sonia: There is apparently a big meeting that will be held by the top oil producers in Doha later today. Are you expecting anything significant to come out of that meeting?A: No. I think for the moment it does appear to be just a further discussion around supply and you need the two big majors in particular to change; they haven't intimated that they will do at this point in time. So if that remains a case then this is going to be a jawboning in the market. The price action out of these headlines does suggest that the market put some probability to it and we think that it could continue to support prices but the fundamentals from our point of view still remain weak and that's going to override this boost to sentiment that we are seeing driven by these headlines.