Forecast: Brent oil can fall below $ 50 a barrel

Baku. 27 April. REPORT.AZ/ Brent crude oil price on world market may fall below $ 50/barrel in next few days.

Analytical Group of Report believes, possible increase associated with worries about extension in production cut agreement. 

Thus, according to the Energy Information Agency (EIA) of US Department of Energy, on April 15-21, daily oil production increased by 13 thousand barrels or 0.14% and reached 9 265 mln barrels. Meanwhile, US gasoline stocks showed growth of 0.5 mln barrels or about 7 times more than forecast - 3.37 mln barrels.

The main concern at the moment is related to the extension of Vienna agreement. OPEC and non-member countries are expected to discuss this issue on May 25. Notably, news about Iraq’s will to increase production and hesitation of Russia on extension of agreement have negative impact on oil prices. For this reason, Brent crude oil price of fell below $ 52 per barrel.

Notably, tomorrow, April 28, the US will announce the number of active oil wells. In case of an increase the price of oil may fall below $ 50/barrel. 

However, price of oil expected to rise again towards the middle of May and reach $ 55/barrel again.