Oil prices trend will be determined today

Baku. 12 May. REPORT.AZ/ In last week, statistics on the number of active oil wells in the US will determine in what range oil prices will move until the end of the year. Analytical Group of Report informs, the figure will be released, on May 12, at 21: 00 local time.

Notably, increase in oil prices by more than 2 times after the decision by OPEC and non-member countries to cut production at Vienna Summit led to increase in shale oil production in the US by 580,000 barrels/day.

If last year, US shale oil production was profitable at $ 60/barrel price, now with the introduction of new technologies, this limit has been lowered enough. Therefore, oil prices were unable to remain at $ 55-60/barrels range. Now, OPEC and its member countries in order to achieve stabilization of production and avoid increase in production started to seek optimal level of oil price.

Analytical Group of Report informs, over the last week, Brent crude oil price was 46,6-51,2 USD/barrel range, ie an average of $ 48.90 / barrel. If today, the number of active wells in US continues to grow, it will cause further decrease in prices.

Without a significant change in the number of wells prices will remain stable, a slight decrease possible in case of the increase.

Notably, last week the number of active wells in the US increased by 6 and reached 703 units. Thus, the number of wells has shown a consistent increase in 16 weeks.