Oil is rising on hopes for a reduction of supply in the market

MOSCOW, 29 Jan. The world prices for oil on Friday morning maintain the positive momentum strengthened on Thursday evening amid hopes that producing countries could soon reach an agreement to cut production to support oil market, according to AFP.

As at 07.50 MSK April futures price for North sea petroleum mix of mark Brent has grown on 1,09% — to 35.2 per barrel. The price of March futures for WTI crude oil rose 1.19% to 33,62 per barrel.

On Thursday the head of the Ministry of energy of Russia Alexander Novak said that Russia is ready to meet with OPEC and other oil producers in February on the issue of oil prices and the coordination of possible decrease of production. At the same time, OPEC said that such meeting is not yet scheduled.

“We believe that the probability of agreement between producing countries is very low. If the output does not happen, then the risk of falling prices will be in the short term”, — quotes Reuters the words of analysts at ANZ.

Experts from Barclays Bank, in turn, said a very skeptical attitude toward the possibility of substantially reducing the production according to the results of such meetings. “Thus, everything we see is an attempt to expand market sentiment, and we do not expect that this will lead to changes in imbalance in the physical market,” said experts.