Oil bounced again briefly today in yet another one day wonder round-trip.

The bounce and decline was related to a meaningless agreement between Saudi Arabia and Russia to Freeze Oil Production.

Catch #1: It’s only a freeze, not a cutback

Catch #2: All the rest of OPEC has to go along

Catch #3: Russia is producing as much as it can, so a freeze by Russia contributes nothing

Caught Already

Mohammad bin Saleh al-Sada, Qatar’s energy minister, said the deal was still contingent on other major producers agreeing to join the freeze, which will probably complicate efforts.

Bijan Zanganeh, Iran’s oil minister, said the country would not give up its share of the market, according Iranian news agency Shana. The country has only just started raising exports following lifting of sanctions last month.

All Hype, No Substance

The Financial Times commented “The deal still marks the first significant supply agreement since Saudi Arabia led the cartel in maintaining production in November 2014.”

Pray tell, how is this non-agreement significant?

The oil price reaction was as one might expect with all hype and no substance.