"Report": Stagnancy observed in oil market - ANALYTICS

Baku. 31 May. REPORT.AZ/ About a week ago oil prices in the world market rose to $ 80 per barrel. Currently, the price range from $ 77 to $ 78 in commodity exchanges .

Analytic group of Report estimates it as observing of stagnancy in the oil market.

Notably, the sharp rise of price was related with US withdrawal from the deal on Iran and to impose sanctions against this country. On the other hand, deepening of the economic crisis in Venezuela, one of the world's leading oil exporters, could endanger the "black gold" industry in this country. This means a considerable decrease of tender in the oil market.

It should be taken into consideration that the demand for oil in the world has almost not diminished recently, but is increasing. This is due to the fact that the world economy is growing more than expected. For example, the economic growth was 2.4% in the EU countries last year which is about 0.4 percentage points more than in the previous year.

Nevertheless, in recent days, the statements by the governments of Russia and Saudi Arabia that they can increase the volume of oil production has caused decreasing in oil prices . At the same time, lessening news on US sanctions against Iran has also stopped rising of oil prices. Because investors’ expectations that demand in the market will exceed the tender decreased.