Report: Upper limit of oil prices will be set at $50-52/barrel

Baku. 5 May. REPORT.AZ/ Brent crude oil price in the world market fell by more than 10% in the last four business days. 

Analytical group of Report informs that this is due to the increase in daily production in the US by 28,000 barrels, or 0.3% - to 9.293 mln barrels in the week from April 22 to 28, as well as an insufficient reduction in oil reserves. 

Analysis of recent months indicates a significant stimulating impact of oil prices at $ 55-60/barrel on the growth of shale oil production in the United States. At the same time, OPEC and countries outside the cartel are forced to cut production. Prices began to decline due to the situation in the oil market. If prices remain at the level of $55-60 per barrel, the United States will start to oust other countries from the market by increasing oil production.

Analytical group of Report believes, the OPEC and countries outside the cartel are now in search of the optimal level of oil prices to slow the growth rate of oil production in the US: “Presumably, this will be $48-52/barrel. In the coming days, prices will be set at a level that will stabilize oil production in the US. Market research shows that in the coming year oil prices will move in the range of 42-52 USD/barrel”.