PARIS, March 11. The oil price has bottomed, says a March report by the International energy Agency (IEA).
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“World oil prices recovered substantially over the last few weeks. With $28,5 per barrel in mid-January, Brent crude oil rose to around $40/bbl to date. However, do not take this as a sign that the worst is behind us. However, there are signs that oil prices may have hit bottom,” – said in the report.
Among the factors that contributed to the recovery in oil prices in early 2016, the IEA calls the potential actions of the oil producers to control production, interruptions in oil supplies from Iraq, Nigeria and the UAE, as well as signs of decline of oil production by countries outside OPEC and the depreciation of the US dollar.
At the same time, the IEA’s experts noted that possible freezing of oil production at the level of January will not produce a rapid effect on the oil market. “Some oil producers are planning to discuss a potential freeze of the level of oil production. We cannot know the outcome of the negotiations and in any case it is unlikely that an agreement can significantly affect the balance of supply and demand in the first half of 2016”, – stated in the IEA report.
