Baku. 19 January. REPORT.AZ/ Price difference between WTI and Brent gradually increases. A few years ago the difference was in favor of Brent, now Texas oil sold more expensive.The reason is the decline in oil production in the US and growth in production of Brent.
Analythical group of Report notes that, after the 2008 crisis, the United States switched to a policy of quantitative easing and reduced the key rate to zero, and local producers of shale oil increased investment. The offer increased to 4 mln barrels per day, and because of the low demand, prices began to fall.In order to maintain market share, OPEC increased monthly production to 1.5 mln barrels. Asaresult, oil quotations fell sharply.
However, situation with shale oil is a bit different. To maintain production at the highest level it is necessary to invest large investments in shale deposits.With oil prices at 30 USD / barrel, the financial situation of producers of shale oil has deteriorated, most wells were closed.
Report analysts believe that in 2016 the price of WTI crude oil will show a positive upward trend compared to Brent.Capacity in countries producing Brent oil will put pressure on oil prices of this brand. During the year, the cost of the Texas oil may exceed Brent by 10 USD.Most likely, this year the price of WTI will vary between 28-48 USD / barrel, Brent - 20-40 USD / barrel.