Oil futures prices to slump

Oil futures prices to slump OPEC to reduce oil production, the US will increase
December 6, 2016 13:09
Oil futures prices to slump

Baku. 6 December. REPORT.AZ/ Oil futures short positions for the period of 2017-2018 reached the maximum level. Report informs, oil prices which reacted positively to the OPEC summit on November 30 in Vienna to cut production that reached 55 USD/barrel.

US oil producers taking advantage of it tried to stabilize oil sales at high prices and sold maximum amount of futures contracts for the last 10 years.

US oil producers stabilized the sale at high price for next two years and oil wells began to run.

Thus, the number of oil wells increased from 316 by 51% and reached 477 units. Rising oil prices will improve financial position of US oil producers and enable to adapt to the new conjuncture. 

Analytical Group of Report believes, as a result, OPEC will reduce production, the US will increase. An agreements reached at OPEC summit will last for 6 months.During this time, oil production in US will increase.If OPEC will not conclude new agreement supply may exceed demand again.

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