Report experts: Oil price hike is temporal

Baku. 26 September. REPORT.AZ/ The recent rise in world oil prices is temporal. Analytical Group of Report News Agency informs, today the price of Brent crude oil has risen to $ 58.88/barrel in global oil market. The reason for this was the political tension in the backdrop of independence referendum in Iraqi Kurdistan. In addition, the ongoing problem between North Korea and the US has positively affected oil prices.

Analytical Group believes, oil prices will temporarily exceed $ 60 per barrel, but later will gradually decline as a result of growth in active oil wells number, as well oil output in the US.

"High prices will accelerate inflation in the US, and Fed will start to aggressively increase discount rate. As a result, US-dollar exchange rate will start to strengthen, creating stress in global financial markets.This will also lead to fall in crude prices, especially oil prices. Increase in interest rates will lead to slowdown in emerging economies, which in turn will lead to decline in oil demand”, experts stressed.

The Analytical Group predicts, Brent crude price will be above $ 50 /barrel by late 2017.