"Report": Oil prices will fall, regardless of results of Vienna Summit

Baku. 25 November. REPORT.AZ/ Oil prices on the world market will fall, regardless of the decision taken at the OPEC + summit, to be held in Vienna on 30 November, Analytical Group of Report believes.

Notably, the summit will focus on the extension of the OPEC + agreement (the reduction of oil production volumes), which will expire on March 31 and the possibility of a slight reduction in production.

Analytical Group believes, increase in oil price up to $ 65 per barrel is due to the fact that, there is probability that the agreement can be extended by the end of 2018, ie an additional 9 months.

Despite the positive decision at the summit, it will temporarily increase the "black gold" and soon the price will fall.

If the summit gives no result - that is, if the discussions should be continued at the next meeting, or if the duration of the agreement would be extended for a shorter period of time than 9 months then the oil price will fall faster.

Notably, oil price at $ 65 has activated US shale oil producers. The number of active oil wells in the country increased by 9 units during the week. Production increased by 13,000 barrels to 9,658 million barrels / day and historical record was achieved. For this reason, it is more realistic that by lowering oil prices participants of OPEC + countries will encourage U.S. to reduce production.

Analytical Group of Report predicts that Brent crude will gradually decrease to $ 55 per barrel next week.