28.10.2014 - Oil prices will not grow in the near future
The price of oil continues to fall, and at the moment there is no reason to change the downward trend. The main factors that negatively affect the dynamics of quotations of black gold remains growth of oil production in the United States in connection with the development of shale oil, amid rising inventories in the country. It is worth noting that the volume in the United States made even to Saudi Arabia. Countries the OPEC will hold a meeting on November 27 at which can decide to reduce the volume of production, but Saudi Arabia and Kuwait announced maintaining current production volumes. Demand for oil will also be lower than expected in Asia and Europe, and news about the decline of forecast global economic growth is an additional negative factor for oil prices. Reducing the pace of price decline after reaching the expected level of cost of oil production in Russia and Iran, near $ 75 per barrel of oil. We maintain a medium-term negative outlook and recommend holding short positions.