Baku. 3 May. REPORT.AZ/ The participants of the Vienna agreement dated November 30, 2016 to reduce oil production, will most likely be able to extend it. This probability makes 75%.
Report informs citing the Forexpf.ru, orecast was made by analysts of US bank JPMorgan.
According to forecast, "Efforts by OPEC and non-member countries to reduce production will bear fruits, eventually in short and medium term we will see a reduction in the amount of oil reserves. It also shows that the drop in oil prices at the moment is creating favorable conditions for buyers”. Notably, the term of Vienna agreement ends on June 30. Summit in connection with the extension of the agreement expected to be held on May 25.
In addition, the shale oil extraction industry in US has started to grow again, the current price level of funds invested in this area is fully justified. Also, OPEC and non-member countries are failing to comply with obligations, that is a part of the problem. According to "JPMorgan", these two factors will prevent the increase in the price of oil. According to the bank, average price of Brent crude oil $ 55.78/barrel, while for WTI - $ 53.57/barrel.
JPMorgan also said that if the Vienna agreement will not be extended, oil price can fall below $ 40/barrel.