Baku. 22 August. REPORT.AZ/ After the sharp growth in price of oil on world commodity markets in last 3 weeks, today on August 22 the price began to decline. Report informs, announcement on August 19 about increase in number of oil and gas drilling wells 8 consecutive weeks led to a decrease in oil prices.
Report informs referring to the company "Baker Hughes" operating in oil and gas service sector, oil and gas drilling wells in operation increased by 10 or 2.07% on August 12-19 and amounted to 491 units. The number of oil wells increased by 10 units or 2.52% and reached 406 units. No change occurred in the number of gas wells during the week and the number of active wells made 83 units.
Compared to the same period last year the number of active wells decreased by 394 units or 44.5%.
Notably, the number of wells in operation for the first time since February was more than 400.
"There are many conflicting factors at the moment and prices are expected to be choppy [ahead of the OPEC meeting]," said Barnabas Gan, an economist at the Singapore-based OCBC.
Notably, the OPEC Summit expected to be in September on freezing oil output led to an increase in price of "Brent" in last 3 weeks from 41,55 USD/barrel by 9,67 USD/barrel or 23,27% to 51,22 USD/barrel.
After the reporting an increase in the number of wells in operation in the US "Brent" crude oil price fell from 51.22 USD/barrel by 2.26% to 50.06 USD/barrel.
Energy analyst at the National Australia Bank Vyanne Lai in an interview with The Wall Street Journal expressed different opinion. "It seems like the producers are just paying lip service,"- V. Lai said.
Analytical group of Report believes oil prices will remain at 35-55 USD/barrel in 1 year.
The global economic crisis will continue until 2020 and oil prices are likely to drop even lower than 20 USD/barrel.