Oil prices may decline to $40-50 per barrel - FORECAST

Report: The price of $60/barrel will be supported, as a rise in the price of $72-75/ barrel seems real

Baku. 4 July. REPORT.AZ/ U.S. oil drilling this week increased for the first time since December, 2014. As "Baker Hughes" reports, the oil rig count rise of 640 for the first time in 2015.

Report informs, U.S. crude futures traded around $60,55 a barrel on July 3, after losing about $2.50 on Wednesday due to an unexpected build in U.S. crude stocks that added to the global supply glut.

Last year, U.S. crude prices fell from around $107 in June 2014 to near $42 in March on oversupply concerns as producers in the United States, the Organization of the Petroleum Exporting Countries and elsewhere pulled near record amounts of oil out of the ground despite lackluster world demand. In response to that 60 percent price collapse, U.S. drillers eliminated thousands of jobs and idled more than half of the record high 1,609 oil rigs that were active in October. Despite the cuts, U.S. crude production averaged 9.7 million barrels per day, its highest level since 1971, for a sixth week in a row, according to government data.

Analytical group of the Report News Agency believes that, if "Brent" crude oil price of $60/barrel doesn't find a buyer, the prices will be reduced to $50 for the first phase. In case, the level of demand is greater than supply, then the $40/barrel will be inevitable. Otherwise, the price of $60/barrel will be supported, as a rise in the price of $72-75/ barrel seems real. 

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