Report experts: OPEC+ agreement will knock oil prices down

Baku. 1 December. REPORT.AZ/ The results of the OPEC+ summit held in Vienna yesterday will lead to a drop in oil prices in the global market. Analytical Group of Report News Agency informs, despite the fact that the deal has been extended for 9 months, according to expectations, price of Brent crude oil has dropped yesterday to $ 62/barrel.

Analytical Group notes that because the number of interesting points within the framework of the agreement will hinder rise in prices above the current level, pressure on prices will continue. Thus, at yesterday's meeting, the OPEC+ participants stated that in case of activity in oil market, ie, if price increases, they will complete the deal early.

The Russian side, in its turn, offered to find out exactly when the agreement would end. The reason was the presence of deficit in the oil market. Russia said it doesn’t want rise in oil prices too high and then support shale oil production in the United States.

Analytical Group sayss, because the Russian budget is adjusted to lower oil prices, the fall in prices does not create problems for it. However, as Saudi Arabia wants prices to remain high as it will put up state oil company “Saudi Aramco” for privatization in 2018. For that reason, fluctuation of Brent crude oil price between $ 50-65/bbl is seen as optimal variant.

Notably, high prices also have a positive impact on development of the world economy and acceleration of inflation in the United States.

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