The price of oil for the first half of the month exceeded $53


World oil prices grow for the second consecutive day after the OPEC summit in Vienna on 30 November, agreement was reached on the reduction of oil production cartel by 1.2 million barrels. a day. Today is the last day the cost of a barrel of Brent increased by almost 9% today quotes have increased by more than 2%.

During the evening, the trading price of a barrel of Brent on the ICE exchange for the first time since 19 October 2016 rose above $53. At maximum, its value reached $53,17 by 2.56% above the closing level of the previous trading session.

“Producers have secured higher prices at least until February 2017. The dynamics of oil prices in the medium term will determine the activity of producers in the countries that had not acceded to the agreement of OPEC, especially the US, are quickly able to increase production of shale oil in the conditions of comfortable prices, which may again cause the fight OPEC for market share. In this regard, oil prices above $60/bbl. in the medium term look quite optimistic,” – said in a forecast of Raiffeisenbank.

Another incentive for the growth of oil prices was a report of the energy information Administration of the U.S. Department of energy, to reduce the volume of commercial oil reserves in the country. According to authorities, during the week from 19 to 25 November 2016 the oil reserves decreased by 900 thousand barrels.

According to the Vice-President and co-owner of oil company LUKOIL Leonid Fedun, in 2016-2017 the price of oil will oscillate between $50 and 60 per barrel, and within three years can reach $80 per barrel. He stressed that “the freezing [of oil production at the current level] even better reduce [production]”.

However, a prolonged increase in oil prices believe not all experts. In particular, SGB Bank analysts note that in the last decade, OPEC has been regularly violated by them production quotas and it is unknown whether they will be able to stick to this time.

“In this situation, investors began to rethink what is happening, and although optimism prevails, it is unlikely it will be enough for above $55 per barrel, although this level is achievable even up to the end of this week”, – stated in the forecast of GBS.

By 17:00 MSK cost of a barrel of Brent crude on the ICE futures exchange was $53,16

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