The price of oil is ready to grow to 85 dollars per barrel

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This weekend in Algeria hosted a meeting of the Ministerial monitoring Committee of OPEC+. The main result – the refusal to increase production quotas. The option to increase production quotas by 500 thousand barrels per day was considered, given the reduction in oil exports from Venezuela and Iran. The Committee called for the respect of current agreements and to reach 100% execution of the transaction, it will need to cut production by 1.8 million barrels. To increase the quota the cartel can come back next year.
Recall that the current agreement between the OPEC countries+ valid until the end of December 2018, towards the end of the year, the participating countries will discuss a new agreement. This is likely to be one of the main issues at the meeting of the monitoring Committee on 11 November in Abu Dhabi and at the OPEC meeting in Vienna on 6 and 7 December.
Oil prices saluted the results of the meeting in Algeria as an increase of 2%. In recent weeks, Brent look of confidence. It is significant that the negative news (exacerbation of trade wars between the US and China, the President calls for Donald trump to OPEC to lower oil prices) has led to a serious slump in oil prices. And as soon began to receive positive news, the oil did not fail to grow. It talks about positive view on the oil market participants, the uptrend remains in force. Don’t forget that November 4 will be restrictions on the purchase of Iranian oil. The break of the psychological mark at $80 per barrel oil quotations gives an additional impetus for growth. The nearest target for Brent to $85 a barrel.
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Roman Tkachuk,
Senior analyst,
Alpari