23.09.2016 - We forecast a drop of oil by 10-15%
The price volatility of American benchmark Light Sweet crude oil remains high amid expectations of a future meeting a number of major oil producers including Russia and OPEC countries. This informal meeting will be held at the International Energy Conference in Algeria on 26-28 September. We are skeptical about the possibility of reaching a consensus on freezing oil production in connection with the intention of a number of countries, including Iran, Iraq, Libya, Nigeria and Venezuela, to increase the production volumes. Little support for oil prices has a strike on the oil rigs in Norway, threatening supplies from the North Sea. We forecast a drop in prices by 10-15% in the coming weeks and maintain the medium-term negative outlook on oil.