19.08.2016 - After the strong growth we expect to see a correction in oil prices
The price of US benchmark Light Sweet crude oil showed a strong growth by more than 20% in recent weeks amid speculation about the possible achievement of a consensus on freezing oil production of major oil producers including Russia and OPEC countries. Negotiations on this issue will be held in late September in Algeria. It is worth recalling that in the spring attempts to reach an agreement on the issue have failed. It should be noted that the oil market continued to be adversely affected by the data on the drilling activity and the oversupply of oil on the market. Our medium-term outlook remains negative due to the forecast of saving of oversupply on the market and in the near future prices may resume falling within the correction to the next levels of 45.00 and 43.00.