Expert: the price of a barrel of oil in 2016 will be $20-$49

Expert: the price of a barrel of oil in 2016 will be $20-$49


WASHINGTON, February 27. /Corr. Anton Freaks/. The price of oil in 2016 will range from $20 to $49 per barrel. This opinion in an interview with TASS expressed That Close – founder of the US-based Information services at the oil price (Oil Price Information Service, OPIS), which is one of the world’s largest organizations, engaged in the analysis of the energy market.

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“The trading will be very volatile, and prices in 2016 will range from $20 to $49 per barrel average, which ultimately may mislead others in,” he said.

However, according to him, all forecasts, whether they come from him or from “multi-billion dollar banks and other organizations, it is highly imperfect.” “It’s like predicting the weather in new Mexico, where the average annual temperature is about 10 degrees (Celsius), but during the year it is accompanied by sharp fluctuations between extreme minus 23 and 38 degree”, – he explained.

From the point of view of Close, oil prices are “unsustainably low now”, and this year they can expect “very rough road”.

The analyst believes that oil will return to the value of $100 per barrel, but only in the next ten years. “I doubt that this will happen in the current decade”, he said, noting that with the increasing number of cars worldwide “the situation will change”.

Infographics


Oil prices over 40 years

Infographics

Commenting on the situation with Saudi Arabia, Kloza noted that Riyadh “consciously decided to seek its market share instead of balance the price.” “They, along with the United Arab Emirates and Kuwait are tired of being the only countries to cut production, is very inefficient when the Organization of countries-exporters of oil (OPEC) asks about it,” he concluded.

Currently negotiations are underway about the possibility of “freezing” of oil production by leading countries-exporters of this raw material. So, on February 16 in the Qatari capital Doha, Ministers of oil of Saudi Arabia, Qatar, Venezuela, included in OPEC and Russian energy Minister Alexander Novak held talks on improving the price situation on the oil market. The sides expressed readiness to save, on average, in 2016 oil production at the level of January of the current year, if other countries-oil producers will join this initiative. On 17 February in Tehran passed negotiations of Ministers of oil of Iran, Venezuela, Iraq and Qatar, who discussed the possibility of “freezing” the level of oil production. Following the talks, the Iranian oil Minister Bijan Namdar Zanganeh announced that Iran would support any initiative to improve the situation with oil prices. During negotiations, the Tehran insisted that the country needs to recover market share lost during the years of sanctions.

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