On Tuesday, oil prices after a significant rise at the end of the previous session continued to rise on expectations of renewal of agreement to limit oil production.
So, futures for oil of mark Brent has grown on 0,29% – to 51,97 USD per barrel. WTI has risen on 0,33% – to 49.01 per barrel, reports “Interfax”.
The rise in oil prices observed on the background of discussions about the possible extension of the Vienna agreement to limit production. Experts believe that the tendency to lift the oil market will continue in the next ten days, until 25 may, when in Vienna the oil-producing countries will discuss extending the freeze of production.
Recently, the energy Ministers of Russia and Saudi Arabia Alexander Novak and Khalid al-falih announced in China that will do everything possible to achieve stabilization of the oil market, and will offer to extend the agreement by OPEC and other oil-producing countries to limit production from nine months up to the end of March 2018.
Goldman Sachs analysts believe that other oil-producing countries will support the initiative of Russia and Saudi Arabia. “We see a real commitment to the reduction of excess oil in the global market, two important oil countries – Saudi Arabia, the world’s largest oil exporter, and Russia, the world’s leading producer of oil” – analyst Forex.com Fawad Resected.
“With the support of Russia, I think, an agreement will be reached, – analysts say MarketWatch. – It is obvious that the market expects that oil prices are going up”.
According to forecasts, the official extension of the agreement on the limitation of oil production should cause a new rise in prices.
However, even with the extension of the term of the agreement OPEC and non-OPEC concerns of market participants in relation to the growth of oil production in the US will continue to recognize analysts.
According to the forecast of the office of information in the field of energy US Department of energy, published on Monday, crude oil production on seven major shale areas of the United States in June of the current year will increase by 122 thousand barrels per day (b/d) compared with may – up to 5,401 million b/d.
Recall, November 30, OPEC agreed to cut its production by 1.2 million barrels a day from October level. 11 non-OPEC countries, 10 Dec agreed to reduce its production a total of 558 thousand barrels per day.
The agreement was concluded for the first half of 2017 with a possibility of extension, which will be considered at the Ministerial meeting of the monitoring Committee of 24 may, and on the meeting of OPEC and countries that are not members of the cartel, may 25.