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Oil prices to lag again - REVIEW

Increase in oil production, may reduce prices down to 30-40 USD

Baku. 2 May. REPORT.AZ/ oil price differences between WTI (Texas oil) and "Brent" again fell to 1.3 USD and in the near future it is expected to come down to a minimum. 

Report informs, reduction in number of oil wells in United States on April 22-29 by more than 11 units or 3.2% to 332 units has led to the increase in the price of oil in the United States. It is said in a statement of "Baker Hughes".

In April daily oil production in the US reduced below 9 million barrels per day. In contrast, the Brent-producing countries increased production. So, in April, Iraq has increased daily oil production to 3.36 mln barrels, approaching the historical record in November 2015 to 3.365 mln. barrels / day. Note that this figure does not reflect the volume of crude oil in northern region of Iraq. At the same time, Libya also plans to increase production volumes. The main oil producer - Saudi Arabia in a program to reduce dependence of the economy on oil to a minimum until 2020 and set the base oil price at 30 USD / barrel. This suggests that in the near future, Saudi Arabia can increase oil production. As a result, Brent crude oil for the last two working days fell by 1.70 USD/barrel or 3.5% - to 46.8 USD/barrel.

Analytical Group of Report News Agency believes that oil prices will decline again after rising to 50 USD/barrel.

Thus, according to The Wall Street Journal, a significant increase in oil prices in recent months by approximately 79% may again lead to the launch of the US rigs. Thus, according to The Wall Street Journal, a significant increase in oil prices in recent months by approximately 79% may again lead to the launch of the US drilling rigs. If prices remain in the range of 40-50 USD/barrel, US oil prices will exceed Brent. If prices rise above 50 USD / barrel, a sharp decline in price predicted down to 30-40 USD / barrel against the background of oil production growth.

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