Forecast: Average oil price will be in range of 50-60 USD/barrel

Baku. 12 December. REPORT.AZ/ After the meeting of non-OPEC countries on December 10 in Vienna to reduce production "Brent" crude oil price exceeded 57 USD/ barrel.

Report informs, this is the highest price for Brent since July 15.

Notably, the price of oil rose about 32% amid positive expectations about production cuts.

New oil wells started to operate in the United States after prices exceeded the level of 50 USD/ barrel.

Thus, the number of active oil wells in US increased by 21 or 4,5% and reached 498.

Analytical Group of Report believes, oil prices at 50-60 USD/ barrel will further increase number of wells in US. Then it is expected that oil prices will decline below 50 USD/ barrel. However for some time oil will be sold for higher than 50 USD. The reason for this shown as increase of inflation in US and the euro zone.

Moreover, high oil prices will lead to the creation of new jobs in the energy sector.

Notably, oil producers in United States within the next 2 years insured current level of oil prices by selling financial options. This shows that their oil prices can decline.

Analytical Group of Report forecasts, as of the end of the second quarter of 2017 and on the background of slowdown in China's economy oil prices will drop to 40 USD/ barrel.In the short term, oil prices will go back to 50 USD/ barrel.