Oil price is expected to decline by 12%

Oil price is expected to decline by 12% Experts: Oil prices will continue to fall
August 3, 2016 13:32
Oil price is expected to decline by 12%

Baku. 3 August. REPORT.AZ/ Price for Brent crude oil is expected to decrease to 36-37,5 USD per barrel in the world markets.

Analytical Group of Report News Agency consider that at present, price for Brent crude oil per barrel is about 42 USD, which is a level of technical support. However, this price is not attractive for investors, next support level of Brent will be in the range of 36-37,5 USD.

Notably, currently available factors in the oil market show even lower prices. Thus, consecutive 5-week increase in number of the US active drilling wells, Saudi Arabia launching to sell discounted oil in the Asian markets, increase of oil production and export by Iran, Libya, Iraq negatively impact oil prices. Investors are expected to determine direction of prices after seeing weekly changes in oil and oil product reserves, declared by the US Department of Energy today.

Yesterday, American Petroleum Institute has announced changes in weekly oil reserves. According to the report, on July 22-29, the US oil stocks reduced 1.34 mln barrel according to the investors' forecasts.

The Netherlands' ABN Amro Bank Senior Energy Economist Hans van Cleef told to Reuters that oil prices will continue to fall in the near future as oil market is faced with a plenty of proposals. 

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