Oil price: Saudi Arabia can increase oil production

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Iran is the second country in OPEC’s quantity of oil production. Daily production in this country is about 3.5 million barrels. Of course, care Tehran from the global oil market will cause some panic among the processors, since many refineries in Europe and Asia are designed for the processing of oil produced in Iran and Middle East countries. Whether countries in the region to compensate for the resulting shortage of oil is an open question.
Saudi Arabia can increase oil production, but not the deficit. Russia can increase production, but there is an agreement of OPEC countries+ on the restriction of production and break it while no one is going.
Also, with the onset of the winter period the demand for oil always increases. Plus the decline of oil production in Venezuela. All of these factors could play in favor of the rising oil prices.
On the eve of elections to the U.S. Congress, the government and the presidential administration will be looking for various ways to reduce oil prices. Perhaps this will give short-term reduction of quotations of “black gold”. But what will happen after the US elections, and the government will be able to keep the price of oil, time will tell.
BRENT crude is now trading in the range 78,50-79,50 USD, and the determining factor of the growth will be overcoming the barrier of $ 80, after which growth is possible and up to $ 100.
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Denis Lisitsyn,
The trader-an analyst of the company “Finist”