Oil prices in the last three weeks showed an increase of more than 20% and break the mark of $50 per barrel, up largely on speculative reasons, said the Ministry of economic development (MED) of Russia. About it “RIA Novosti” reported the press service of the Ministry. According to authorities, the growth of quotations mainly linked with the expectations planned for the September meeting of OPEC to discuss including a possible freeze of production.
“At the same fundamental parameters of the oil market are changing in line with the baseline projections. The proposed excess oil is reduced, but this process will not be completed until next year. While still very high inventories of oil in the world,” — said the press service of the MAYOR.
The Ministry also noted the reaction of the shale oil producers to increase prices, namely, the sharp rise in the number of drilling rigs in the U.S. in the last two or three months.
“$45 to 50 [per barrel] — steady range for the next year or two”,- concluded the Ministry, stressing that the medium-term projections the MAYOR is based on $40 per barrel. The Ministry added that the revised parameters will be calculated in September.
Last week, August 18, futures on Brent and WTI trades crossed at $50,16 and $47,41, respectively, showing an increase of more than 20% since the beginning of August. In the course of trading on 23 August quotes Brent has also surpassed $50 per barrel, the maximum reaching $50,14, but then was followed by a slight rebound. As of 19:30 GMT, Brent was trading at $49,8 per barrel.