The price of oil broke through $80 per barrel should we expect more?
In today’s trading, the price of Brent crude oil broke above $80 a barrel – the target announced by us in the annual “Strategy 2018”, taken after a particularly long siege. We can distinguish several reasons for this: the output States of the Iranian deal, the problems in Venezuela, the actions and the forecasts of OPEC +. However, there are conspiracy theories. There is a view that China and the United States reached a secret agreement, which implies high energy prices that will support the us shale and reduce the profitability of Chinese exports.
Can somehow relate to the US President Donald Trump, but it raised the price of oil that solved all the problems of the Russian budget. Oil to Russia over any sanctions. Likely, oil prices will continue to rise in the near future. However, we recommend that in the medium term to focus on our target of $80, that is between $75-85. We will not be much surprised if before the end of the year the Saudis will hold its IPO. Now, by far, the most time.
Someone will ask, why at such oil prices, a weak ruble. This is a question for the Russian monetary authorities that support a dollar of their intervention.
The Director of analytical Department,