Fortune predicted oil prices by the end of 2016

Fortune predicted oil prices by the end of 2016


According to the editors of the American business magazine Fortune, the price per barrel will rise by about 20% compared with mid-November 2015.

MOSCOW, 23 Nov –. The American edition of Fortune published a forecast of the world prices for oil by the end of 2016, saying that the price of “black gold” in a year can return to previous levels.

According to the wording of Fortune, the price per barrel will rise by about 20% compared with mid-November 2015. “Due to the high demand of American consumers and slowing, but still growing demand in China, prices should rise to $55 per barrel by the end of 2016”, — the newspaper notes. However, for most companies in the energy sector it is not enough for the optimal price to complete the work of oil producers starts at $60 per barrel, the article notes.

At the moment, world oil prices show a negative trend amid fears about the preservation of oversupply of raw materials on the world market, according to AFP. Investors are still too pessimistic to respond to evidence that commercial oil reserves in the U.S. for the week ended 13 November, rose by 0.3 million barrels, or 0.1% to 487,3 million barrels.

“Very high pressure from the large oil reserves in the United States. Markets can only recover if they will see lower inventories in the USA”, — quotes Reuters the words of an analyst on commodity markets NH Investment & Securities Kang Yoo-in (Kang Yoo-jin).

Oil prices have already lost about 60% of their value since mid-2014 because of oversupply in the range of 0.7 to 2.5 million barrels per day, which, according to many experts, it may persist into 2016. In addition, the data of the market say that investors are already preparing for the next price drop in March 2016.