Report: Oil price can rise to 42-45 USD a barrel

Report: Oil can rise to 42-45 USD a barrel

Baku. 7 March. REPORT.AZ/ Oil prices rise on the world market due to the reduction in the number of active oil wells in the United States.

Report informs according to the report of Baker Hughes, which is published every Friday, the number of active oil wells decreased by 8 units, or 2%, to 392 units. During the year their number has decreased by 1 194 units or 71% - to 489 units.The number of active oil wells since 2010 has reached a minimum, down to the level of 2009.

Following the publication of the report, investors expected a gradual reduction of oil supply as a result of Friday the price of Brent crude oil increased by 3.6% and amounted to 38.72 USD / barrel.

According to the Commodities Futures Trading Commission (CFTC), hedge funds no longer expect prices to fall below 20 USD/barrel and began to rapidly close their short positions.

However, despite the positive reports on the impact of the oil market, rising US oil reserves reached a maximum of 80 years mark. Investors also await with interest the results of the summit of OPEC and non-OPEC producing countries, which is scheduled for March 20 in Russia.

Analytical Group of Report News Agency believes that after a sharp fall in prices by 90 USD a barrel in the last 18 months there is a technical correction in oil prices, which can rise to 42-45 dollars / barrel. "After that, prices will fall again.In the next three years, oil prices will fluctuate in the range of 20-50 dollars / barrel.The sharp rise in oil and keeping them at a high price mark can be an incentive to intensify producers of shale oil in the US, which is currently not realistic." 

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