Forecast: Oil price goes back to 2008 level

Baku. 8 December. REPORT.AZ/ On December 7 oil prices dropped sharply on the world market. Prices went down after OPEC meeting on December 4 in Vienna.So, if on the eve of the meeting Brent crude cost 45 USD / barrel, but now it fell by 9%, and made 41 USD/barrel. Although at the meeting announced an increase of daily production quotas by 1.5 mln barrels, later this news was denied.OPEC said that to date the quota is 31.5 mln barrels per day. It should be emphasized that in recent months, daily production by OPEC amounted to 31.7 mln barrels per day, exceeding the quota by 5-6%.

Report informs, OPEC member countries have come to the conclusion about the impossibility of reducing production, although this issue was discussed at the last meeting.News about bringing to market additional volumes of oil by increasing production by OPEC countries and the lifting of sanctions against Iran was forced to leave the cartel quotas at the same level to preserve market share.As a result, the oil market reacted strongly to the news from the last meeting.Yesterday, on December 7, WTI crude oil fell by 2.49 dollars or 6.2%, and sold at the price of 37.65 USD per barrel, the price of Brent decreased by 2.27 USD or 5.28% and amounted to 40.73 dollars barrel.

On December 4, OPEC officially stressed the need to "closely monitor the situation."During the meeting it was noted that Iran returns, and volume production is changing, so the decision is postponed until the next meeting of OPEC.

According to Robert Miner, strategist at Aberdeen Asset Management Investment, the December session was very tense, and while it did not manage to set an upper limit of production volumes, and the country received a carte blanche to act at its discretion.

OPEC President, the minister of the oil industry in Nigeria Emmanuel Ibe Kachikwu said that fall in prices was a serious blow to the budgets of many OPEC countries, but it also slowed the development of shale oil industry in the United States and Canada.

Analytical group of Report predicts that the price of WTI crude oil would fall below a minimum of six years, which was observed on 3 August (37.75 dollars / barrel), - up to 32.40 dollars/barrel.In turn, the Brent crude oil has updated a minimum of three years, observed on August 3 (42.23 USD/barrel).It is expected that Brent will fall to an eleven-year low of 36.2 USD/barrel, in December 2008.The fall in prices to a minimum level predicted by the end of 2015.