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Russia and OPEC will discuss the increase in oil production by 1 million barrels per day

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Russia and OPEC will discuss the increase in oil production by 1 million barrels per day
May 25
09:00 2018

Oil prices continue to go down. The fall of its cost was triggered by the OPEC official statement that in the near future oil production was likely to grow by 1 million barrels a day. This measure is necessary to meet the deficit caused by the reduction in oil supplies.

The data publication on the number of operating drilling rigs in the United States became the factor that had contributed to the deplorable situation in the energy market too. Of course, the data aren’t very encouraging, as according to them, the US pumps out oil more than ever.

“The June OPEC meeting deserves special attention,” said Tom Kloza, Chief Oil Analyst for OPIS. He stressed that there was no unified voice among the analysts (someone was talking about a production increase by 300 thousand barrels a day, while others predicted an increase by one million barrels per day).

Since January 2017, OPEC and a group of non-OPEC countries led by Russia, has reduced oil production in an effort to cope with the oversupply of resources in the world commodity markets.

Plans to increase oil production arose amid fears of a decrease in oil exports from Iran, following Washington’s decision to withdraw from the nuclear deal with Tehran.

Analysts of the French financial conglomerate Société Générale raised their forecasts of oil prices.

In 2019, the price of a barrel of Brent crude oil is expected to increase to 72.75 US dollars, which is $ 7.75 more than the previous forecast. Analysts at Société Générale also reported that the following year, the cost of a barrel of WTI oil (Texas light sweet) would increase by $ 6.75 to the mark of $ 67.75.

The team Money-Investing prepared the statistics of July futures for oil:

  • The value of CLN8 crude oil has fallen by $ 2.83 to $ 67.88 per barrel,
  • Brent oil has reduced its LCON8 rate by 3% to $ 76.44 per barrel, which is considered to be the lowest price since 8, May this year.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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