Oil price: OPEC does not understand what to do after termination of the agreement

  • And
  • +A

The Russian market is still weakly touched on hysteria “English poodle” in the media, as missed and investors on global platforms, and the “black gold” continues to be a major indicator of the sentiment of foreign hedge funds.
Oil prices in recent days is trading in a moderately neutral zone, despite a fresh survey of EIA, which has again focused attention on the threat of high rates of production in the United States, which confirms previous forecasts.
You can mark further consolidation in the range of 64 to 66 dollars per barrel, with a weak negative background in the industry. Around the optimal raw material prices, the controversy erupted within OPEC. Iran believes that the need to strive for around 60 to reduce the temperature of American manufacturers, but its weight in the supply of low and Saudi Arabia’s budget is drawn up, based on the mark of 70, although there have to make concessions to maintain its market share.
For Russia, OPEC changed the forecast production increase offers up to 11 million barrels per day, which will attract additional funds into the sector and the budget, but these figures suggests that the organization sees uncertain future of the deal in 2017 at the end of 2018. The year may end with a revision of the agreements and the new deal would more accurately reflect the interests of the participants.
Tomorrow is expected a “technical” rebound on quotations and the price of oil will remain in the range of 64-64,8 dollars per barrel. The shifting of assets and a reaction to the possible actions of Russia and of England will add to the uncertainties, but will not lead to serious movements.
Alexander Grigorenko,
Asset Manager
IR Global Capital