Experts: Battle for oil market has only just begun

Baku. 4 June. REPORT.AZ/ In May 2015, Russian daily production averaged 10.708 million barrels of oil, while in Saudi Arabia, this number made 10,250 mln. barrels.

Report informs referring to Bloomberg, in May Russia produced 45.28 million tons of oil and gas condensate, which is about 1.67% more than in May 2014. In April, Russian oil production totaled 43.7 million tons of oil and gas condensate.

According to experts, the oversupply of oil in the world is putting pressure on oil prices. The cost of Brent crude oil is now hovering around 63 US dollars per barrel. Investors don't exclude that at a meeting of OPEC, which to be held on June 5 decision to increase oil production to be accepted.

Analyst of FG BCS, Mark Bradford believes, the decision to increase the quota to be a response to the possibility of growth in exports from Iraq and Iran. As known, these countries have significantly increased oil exports in April and May. For example, in Iraq, in April the daily oil production amounted to 3.1 mln. barrels. Iran has increased the daily production up to 2.78 million barrels. According to the officials of these countries, in the coming years Iraq plans to increase export volumes to 6, Iran up to 4 million barrels per day.

Experts from the International Energy Agency (IEA) say, between OPEC and non-member states of the cartel, begins a new battle for the oil market, "reducing the price of oil, OPEC could not have an impact on countries such as Russia and Brazil, which continue to increase oil production. Therefore, we can't speak about the victory of OPEC. The battle has only just begun."