The world price of oil could see the light at the end of the “long dark tunnel”, said the International energy Agency (IEA) in its monthly report, published on 11 March.
The IEA notes that the price of Brent increased from $28,5 per barrel in mid-January to $39,8 at time of writing (Friday afternoon on the stock exchange ICE Brent was trading at $40,8). Prices have risen to the highest level in three months, however, this cannot be taken as a clear indication that the worst is over, warns the Agency. “However, there are indications that prices may have reached bottom,” reads the report.
Among the factors that support oil prices, the IEA calls reports of a possible freeze of production exporters, supply disruptions in Nigeria, Iraq and the UAE and the recent weakening of the dollar. “But we can’t be sure, when in 2017 the oil market will reach the much desired balance. It is clear that the current direction of movement is correct, but we have a long way to go”, — reports the Agency.
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In February, Russia, Saudi Arabia, Venezuela and Qatar have agreed to freeze oil production at the level of January, if the agreement will join other major exporters. On March 9 Deputy Minister of petroleum industry of Iraq, al Fayad-It reported that on March 20 in Moscow will host a meeting of representatives of countries of the Organization of the petroleum exporting (OPEC) and States outside the cartel. According to Iraqi officials, the meeting will discuss a freezing of the production level. In turn, the head of the energy Ministry of Russia Alexander Novak said on 9 March that the date and venue is still being discussed and passed on to TASS.
The Agency Reuters with reference to sources on March 10 said that the meeting could not take place due to the fact that Iran has not given consent to the accession to the agreement. “Why now to meet the Ministers? Iran says they won’t take,” — said one of interlocutors of the Agency.