“The price of oil at $50 a barrel — it’s just a psychological barrier,” said Michael Bloomberg, Wittner, head of new York office of oil market research at Societe Generale. According to analysts, the market may not respond to the return of Nigerian and canadian oil, due to the reduction of supply current which has occurred is a price increase.
To stop the growth of losses, 50 the world’s largest public oil companies needed an average oil price at $53 per barrel, the report says Wood Mackenzie last month. American producers of shale oil need a price increase to $55 before the drillers will meet the “significant extension” of the extraction of raw materials, experts noted Bloomberg Intelligence in its report of 3 may.
The oil company launched last year and suspend the implementation of major projects. In March, it was reported that Australian Woodside Petroleum stopping work on the project of floating LNG terminal “Brouse”. Before that in February the company reported a drop in profits at 99% and revenues by one third.
Experts believe that after a period of falling prices producers would tread carefully. When the price was above $60 per barrel, the oil companies invested in the extraction of crude petroleum and watched as by August, the price fell below $40, said Bloomberg Intelligence analyst William Foiles.
OPEC members also will not be able to benefit from the establishment of the price of oil at $50. To balance its budget, countries need a much higher price. According to Bloomberg, only Kuwait and Qatar can balance government revenues and expenses when the price of oil around $50 per barrel.
Earlier, energy Minister of Qatar said that “at the moment is extremely necessary to the minimum price of oil reached $65 per barrel. The Minister of oil of Kuwait, I am sure that by the end of 2016, the oil market will rebalance, resulting in the price of oil will remain at $50 per barrel.
In Russia, the 2016 budget drawn up based on the value of Russian Urals oil at $50 per barrel. Now the Russian oil brand is trading at a discount of about $3-4 K of oil Brent, Urals and therefore have not even reached $50 a barrel, balancing the last days at around $45-46. At a price of $50 per barrel of Urals, Russia’s budget deficit should not exceed 3% of GDP. In reality, in January—April the deficit amounted to 4.7% of GDP.
In a recent review devoted to the study of the ability of the monarchies of the Middle East to conduct effective political action in conditions of low oil prices, Moody’s noted that the state institutions of the countries of the cooperation Council for the Arab States of the Persian Gulf are at different stages of development. The rating Agency has assigned a high level of stability of the state of Qatar and the United Arab Emirates, average — to Bahrain and Oman, low — to Kuwait and Saudi Arabia.