Baku. 18 July. REPORT.AZ/ World oil prices are falling.
Analytical Group of Report informs, Brent crude sold at $ 77-80 / bbl in the first 10 days of July is currently costs $ 71-72.
Market participants believe the price decline will continue.They say the reason is because difference between demand and supply is decreasing.This is due to the following factors:
At the last meeting of the OPEC, held on June 22, it was decided to increase total volume of daily oil production by 1 mln bbl.After that, Saudi Arabia and Russia have sharply increased production. Because OPEC didn’t set quotas for oil production for its members, but it set a cumulative quota for all countries production is expected to increase further.
- Oil production in Nigeria is increasing. The reason is British-Dutch joint venture, Shell, has returned one of the oil fields where it has stopped its exploitation due to force majeure. Thus, daily oil production in African country is expected to increase by 200-250 thousand barrels;
- China's demand for oil is decreasing. The reason for this is the trade war between United States and China. Finally, last month, China's oil imports dropped by about 5 %;
- The Global Fund for Oil Trading - Vitol has changed its area of activity and started to invest in wind energy. This creates concerns in the oil market;
-Probabilities of new US sanctions against Iran are low. This gives Iran chance to not reduce oil production;
- Canada and Libya are expected to increase oil production.