Oil prices continue to rise on expectations of reduction of extraction

Oil prices continue to rise on expectations of reduction of extraction


The cost of April futures for oil of mark Brent has grown on 0,65% – to 35,01 USD per barrel. According to analysts, the discussion of production cuts by OPEC, most likely, nothing more than an attempt to change market sentiment.

MOSCOW, 29 Jan. World oil prices continue to rise amid hopes that the producing countries could soon reach an agreement to cut production to support oil market, according to AFP.

As at 13.23 GMT April futures price for North sea petroleum mix of mark Brent has grown on 0,65% — to 35,01 USD per barrel. The price of March futures for WTI crude oil rose by 0.68% to 33,44 dollars per barrel.

Earlier on Thursday the head of Ministry Alexander Novak said that the subject of planning in February OPEC meeting with representatives of non-cartel oil producing States could be the reduction of oil production of each producing countries at the level of 5%, but you need General agreement. At the same time, OPEC said that such meeting is not yet scheduled.

“Discussion on reduction of (production — ed.) OPEC is likely nothing more than an attempt to change market sentiment. We remain very skeptical that such a meeting will lead to certain reductions in supply”, — quotes Bloomberg an analyst of Bank Mivina Mahesh (Miswin Mahesh) and Michael Cohen (Michael Cohen).

On Friday in an interview with Bloomberg Novak said that the decision about reduction of oil production is only possible in case of consensus of all exporting countries, with the exact dates for possible talks and OPEC countries, not members of the organization, currently no. The Russian Minister reiterated that Russia will participate in negotiations with OPEC and countries that are not members of the organization.

About the ability of Russia to participate in the upcoming February meeting of OPEC and the countries not members of the organization, it became known on January 27 after a meeting of Minister of energy of Russia Alexander Novak with representatives of the oil and gas companies.