Oil prices may dramatically decline

Baku. 28 June. REPORT.AZ/ Price of oil started to rise on news from Norway and Iran.

Report informs, Brent crude oil, which in the past two days fell by 6.7% - to 47.30 dollars per barrel, currently trading at 2.3% above the mark.

Report informs referring to the Russian RIA Novosti, earlier reported that about 750 Norwegian workers in seven oil and gas fields are planning to go on strike. The reason for the protest is a dispute over salaries. The final round of negotiations will take place on June 30 and July 1.

If the parties not agree on the issue, the workers will organize a strike in a number of fields, which will lead to a reduction in oil production. Data accounts on the field are about 18% of total oil production in Norway and a little more than 17% of natural gas, Reuters writes.

According to Bloomberg, in the period from 1 to 20 June, Iran has reduced production by 20%. Notably, in April-May 2016, daily volume of oil production amounted to more than 2 million barrels. After the abolition of sanctions, Iran increased its exports to European countries up to 350 thousand barrels per day, but on 1-20 June exports declined by 18.6% to 285 thousand barrels per day.

The agency believes that oil market demand has dropped. If, in turn, oil production will not be reduced, an excess of supply over demand will lead to a sharp drop in oil prices.