Analysts at banking group Standard Chartered forecast growth of prices for oil by the end of this year amid a likely sharp drop in supply.
MOSCOW, 28 Jan. The price of Brent crude oil may increase by the end of 2016 to the level of 70-75 dollars per barrel, according to analysts, banking group Standard Chartered.
“It follows from the dynamics of supply and demand”, — quotes Agency MarketWatch opinion of senior economist Standard Chartered Maratheftis Marios (Marios Maratheftis).
According to him, the supply of oil could fall sharply in the second half of the year, and all fears of oversupply was based on the surplus, only about one million barrels per day.
In addition, Maratheftis noted that the forecast takes into account the return of Iranian oil to the market. Standard Chartered expects the end of the year Iran will be able to increase the supply by 400 thousand barrels per day.
Iran 16 January got rid of the majority imposed on the country of sanctions — on this day, the IAEA presented a report confirming the readiness of the authorities to implement it through a long negotiation program by a significant reduction of its nuclear potential. Later the EU and the US confirmed the removal from Iran of economic and financial sanctions related to its nuclear program.
Since the beginning of summer 2014 to the end of 2015 oil prices have fallen more than tripled — from 115 to 36 dollars per barrel of Brent, and in 2016 already dropped below $ 30. Fundamentally the decline is due to the high level of production in a world with slower demand, including because of the situation in China. However, such a deep drop (below $ 40-50) experts have been increasingly linked to financial factors, including the strengthening of the dollar. In forecasts they are generally single — low oil prices for a long time.