The price for Brent is above $ 53 per barrel
On Tuesday the black gold is slightly sagging, after the price for it increased to its peak on the eve. However, Brent crude oil is still higher than $ 53 per barrel, but the bullish sentiment is currently prevalent at the market. To the beginning of the day futures contracts for Brent have fallen by 5 cents, amounting to $ 53.09 per barrel on the London Stock Exchange.
By that time prices of November contracts for the US WTI crude oil have fallen by 8 cents, and became equal to $ 51.27 per barrel during the trading process on the New York Mercantile Exchange. On Monday the prices were rising on the background of the Russian President’s comments that the Russian Federation was ready to join the pact of the OPEC member countries regarding the reduction of oil production as well as the positive expectations about the likelihood of the agreement among the OPEC countries.
At the conference in Istanbul Vladimir Putin reported: “In this situation the freeze or even the decline in the production is, perhaps, the only solution to save the stability of the world energy.” Khalid Al-Falih, Saudi Energy Minister, also expressed optimistic expectations about the prospects for the OPEC agreement. The minister made the forecast that prices could grow up to $ 60 per barrel in the near future.
During the trading session on Monday, Brent crude oil was being traded at $ 53.73 at some point. It has become the peak since October 2015. The session was completed at the mark of $ 53.14 per barrel.
Specialists at Commerzbank note that the market is becoming more confident in the continued rise in prices. At the same time, Goldman Sachs analysts warn that restoring the balance of the supply and demand may not occur in 2017. The reason for this is the growth of exports from Libya, Nigeria and Iraq as well as the potential production growth of the shale oil by American oil companies.