Iran's statement on freezing oil production lifted oil prices

Iran's statement on freezing oil production lifted oil prices "Report": If OPEC freezes oil production it will lift oil prices up
August 24, 2016 12:46
Iran's statement on freezing oil production lifted oil prices

Baku. 24 August. REPORT.AZ/ Iran announced it could support the proposal to freeze oil production in the upcoming OPEC meeting in Algeria on September 26-28. Report informs citing the Reuters agency.

Notably, Iran, OPEC's third largest producer, yesterday on August 23 has confirmed it will participate in the upcoming OPEC meeting in Algeria.

In addition Iran has positive approach to the issue of oil production at pre-sanctions level since May, freezing production.

News came from Iran yesterday led to rise in oil prices on August 23.

Thus, on August 19 and 22 increase in oil production by Iraq and raising number of wells drilling in the United States lift "Brent" crude oil price by 3.5% up from 48.5 USD/barrel to 50 USD/barrel.

Analytical group of Report forecasts oil prices will not exceed 55 USD/barrel. Thus, according to "Bloomberg" agency Iraq plans to resume oil production in Kirkuk province. In this case, Iraq's oil exports in few days could increase by 5% or 150 thousand barrels per day. Notably, according to the International Energy Agency, Iraq daily exported 3.71 mln barrels of oil in July. This is by 80 thousand barrels or 2.2%.more compared to June.

Analytical group of Report believes, oil prices are likely to remain at 50 USD/barrel level due to the positive expectations from Algerian summit. Despite reports by number of countries about increase in oil production, prices will not decline and expected to remain at 45-55 USD/barrel range prior to Algerian summit. In case of a positive decision from Algerian summit short-term rise in prices expected. Then on the background of increase in oil production by US shale oil companies supply will exceed demand and therefore prices will again decline. If a positive result on freezing production will not achieved from Algerian summit sharp fall in oil prices up to 35 USD/barrel is possible.

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