Baku. 16 February. REPORT.AZ/ Oil prices increased today with Brent breaking past $34 a barrel on expectations that energy heavyweights Russia and Saudi Arabia will discuss the global oversupply issue in a Doha meeting.
Report informs citing the Bloomberg, European benchmark Brent crude for April delivery was trading $1.30, or 3.89%, higher at $34.69 this morning.
Its US counterpart West Texas Intermediate for March delivery was up $1.30, or 4.42%, at $30.74 compared to its Friday close.
There was no trading in the New York Mercantile Exchange yesterday due to a US public holiday.
Oil prices have been depressed since last peaking in the middle of 2014, due to oversupply, sluggish demand and slowing economies.
They are currently down about 70% from June 2014 levels.
Adding to the pressure on prices is the resumption of Iranian oil exports this year after international sanctions linked to its nuclear programme were eased by world powers.
Bloomberg News reported that Saudi Arabia's Oil Minister Ali al-Naimi was expected to speak privately with his Russian counterpart Alexander Novak in Doha today.
Analythical group of Report believes that a meeting between Russia and Saudi Arabia have a positive impact on oil prices due to political reasons.In the short term price of Brent is expected to rise to $ 40-45 / barrel.In the medium and long term, there is a possibility of another price drop to $ 30 per barrel or below.