09.11.2015 - We expect the fall in oil prices
The number of active oil rigs last week showed a decline for the tenth time in a row. Thus, the figure fell by 6 to 572. This trend confirms the analysts' forecasts for the further reduction of oil production in the United States. So in April 2015 it was recorded a maximum production of about 9.6 million barrels a day, while in the second half of 2016 the volume of production can be reduced to 8.6 million barrels per day. These facts are leveled by the expected growth in oil supplies from Iran by 500-700 thousand barrels per day after the lifting of sanctions and the current oversupply of oil on the market. On December 4, in Vienna, OPEC will hold a meeting at which according to our forecast will leave oil production quotas at 30 million barrels a day. In this regard, we expect a price drop of Light Sweet crude oil in the near future with a target of about 40 dollars per barrel.