Director of Analytical Department Alpari: Oil prices can hit $ 100 / bbl

Baku. 15 May. REPORT.AZ/ The price of oil could jump to $ 100 / bbl and this will happen next year.

Report was told by director of the analytical department Alpari Alexander Razuvaev, commenting on the forecast of US experts from Merrill Lynch that by the end of the year the price of barrel of oil could jump to $ 100.

According to him, this is the first such optimistic assessment by large investment banks. "According to colleagues of analysts', the main factors that will cause a boom in the oil market will be production cut in Venezuela, the US withdrawal from the nuclear deal with Iran, as well as the OPEC + production-limiting agreement, in which Russia also participates. Back at the end of last year, in our annual Strategy for 2018, we set up a target for Brent in the amount of $ 80. We still believe that it will be achieved in the current half-year. And we recommend align with it in 2018-2019. Thus, the price naturally can deviate from our target".

At the same time, A. Razuvaev believes that for a long time at this level, oil prices will not be kept and will be adjusted to a mark of $ 80 per barrel.

Speaking about the situation on the oil market, in general, the expert noted that the OPEC + agreement to cut oil production which is extended until the end of 2018 led to its growth in countries that did not join the deal: "First of all it concerns the USA. There, extraction increased from the beginning of the deal by 18%, and as a result, the US became the second largest oil producer after Russia. Russia now produces 11.35 million bbl / day, Saudi Arabia - 9.92 million bbl / day. Pessimists continue to believe that US oil companies can bring down the market. They are constantly working on technology, and the cost of American oil is constantly declining. Plus, the Fed rate hike is an important long-term factor in favor of falling oil prices".