Price of Azerbaijani oil could rise to 80 dollars per barrel soon - FORECAST

Baku. 2 May. REPORT.AZ/ US Energy Information Agency (EIA) spread information that decline recorded for the first time since November in Cushing, where the largest oil reservoirs located. Over last week the reserves decreased by 514 thousand barrels and amounted to 61.7 million barrels. Earlier, analysts predicted about the overflow tanks of oil and lack of space to store it, and that, consequently, the price of oil dropped to the lowest level. But it turned out that the forecasts did not justify themselves and have been exaggerated.As a result, oil price increased reaching 66 dollars per barrel. Analysts declared the launch of the stabilization of the balance between supply and demand on the oil market.

The average daily production of crude oil in US refineries increased by 105 thousand barrels and amounted to 16.1 million barrels. Increased demand is mainly due to seasonal factors.

Research Group of Report agency believes that the conflict between Yemen and Saudi Arabia, and reduction of oil production in the United States will not lead to a decrease in oil prices.Thus, it is predicted that at the end of May and in early June the price of oil will be 75 dollars per barrel. And the price of Azeri Light, exported by Azerbaijan, could rise to 80 dollars per barrel.

Negotiations on the nuclear program of Iran P5+1  must be completed before July 1. If agreement is reached between the parties, the price of oil could once again fall to 50-60 dollars.

According to recent reports from Iraq, oil exports in April rose to 3 077 mln. barrels per day (in March exports were 2 980 mln. barrels per day).