JBS Energy: Brent oil price may fall to lower than $ 40

Baku. 26 July. REPORT.AZ/ In case OPEC does not reduce oil production, in the first quarter of 2018, price of Brent crude oil may fall to lower than $ 40 per barrel.

Report informs citing Forexpf.ru, JBS Energy oil sector research company based in Vienna has made such a forecast.

According to the report submitted by the company's analysts, at present, the reduction of reserve sin the U.S. encourages oil prices to grow. Thus, in this season, demand reaches the maximum level, and starts decreasing since September.

"Brent" may complete 2017 at the level of $ 45-47/b. Nevertheless, later, a difficult time for prices will come. Director General of "JBS Energy Asia" Richard Gorry reckons that if OPEC does not take any steps in the first quarter of 2018, supply will exceed demand on the oil market. To prevent this, OPEC should reduce oil production. I do not believe that such a step will be taken.

Despite the growth of oil prices in a context of reducing reserves in the U.S. in last several days, demand will go down since September, and in the first quarter of next year, production will go up in Brazil, Kazakhstan, Western Africas and Central European regions. The oil production in the United States is expected to reach 9,6 ml. barrels per day. 

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