Oil is rising in anticipation of the extraordinary meeting of OPEC

Oil is rising in anticipation of the extraordinary meeting of OPEC

In the course of trading Tuesday, the March futures price for Brent crude oil mix rose 32,38 USD per barrel. The price of February futures for oil of mark WTI has risen to 31,76 dollars per barrel.

MOSCOW, 12 Jan. World oil prices have moved to growth after declining during trading on Tuesday, earlier falling below $ 31 USD per barrel, many analysts lowered their forecasts for 2016.

As at 17.49 GMT, the March futures price for North sea petroleum mix of mark Brent has grown on 1,57% — to 32,38 USD per barrel. The price of February futures for oil of mark WTI has grown on 1,11% — to 31,76 dollars per barrel.

A positive impact on the price of oil have reports that the President of OPEC Emmanuel IBE Cacique anticipates convening an emergency meeting of the organization in early March to discuss the issue of the decline in global oil prices. He said that if the oil price strikes $ 35 per barrel, we will consider holding an extraordinary meeting.

Earlier during trading on Tuesday Brent crude oil fell to 30,86 dollar on continuing concerns investors for China’s economy. Investors ‘ concerns intensified after the people’s Bank of China weakened the yuan to the dollar in the first week of 2016, more than 1.5%. Later, however, oil prices have moved to increase.

In addition, oil prices are rising due to signs of stabilization in the stock markets of China after the fall with the beginning of the year. Tuesday the stock indices of China ended the trading session higher after the beginning of the year they showed a strong decline.

Falling oil prices

Many analysts in the new year had to lower their forecasts of oil prices in 2016. So, on Monday some of the largest banks, including Barclays, Bank of America Merrill Lynch and Societe Generale reduced their forecasts, analysts now expect these banks the cost of oil in the range of 37-46 dollars per barrel. The most pessimistic forecast was made, the British Standard Chartered. Its analysts believe that prices could fall to $ 10 per barrel.

Price of oil gave the head of Sberbank German Gref. In his opinion, the prices for oil can fall to 25 dollars per barrel and the dollar may reach the level of 80 rubles.

According to the head of Sberbank, the prices in the oil market in recent time are determined not so much by the decisions of OPEC, many other factors, key among which are the situation in China and a stronger dollar, the oil market is a big financial game.

The head of Sberbank believes that OPEC’s decision may have short-term psychological impact. “Today, OPEC no longer controls the market and has a number of other factors. Today, the market reacts more to the situation in China, the devaluation of the yuan. Today, the Chinese economy is a key story,” he said.

Gref also noted that the business plan of the savings Bank the pessimistic scenario was $ 30 per barrel at the beginning of the year it became real. “We have already begun testing now 25 (per barrel — ed.), but this is a dire scenario,” said Gref, adding that everything will depend on how long oil prices remain at around $ 30 per barrel or less.

In his opinion, the current drop in oil prices is an abnormal failure and expressed the view that at these levels — $ 30 per barrel and below — long price need not hold. However, strong rebound up, in his opinion, also should not be expected.