"Report": Oil price may fall sharply

Baku. 7 September. REPORT.AZ/ On September 26-28, representatives of 73 member states of the International Energy Forum (IEF) are set to meet in the Algerian capital to discuss oil-related issues.

If the meeting will not come to an agreement to freeze or reduce oil production, sharp decline in oil prices at 25-30 USD / barrel until the end of the year expected.

Analytical Group of Report believes, at present oil prices are not falling only due to the probability of positive results from the summit in Algeria.

Thus, according to the Director of Eurasian branch of oil trader company "Trafigura" Jonathan Kollek this year, daily oil production in Russia will be 10.9 mln barrels, while in 2017 - 11.3 mln barrels/day.

According to "Bloomberg", OPEC's oil production in August rose to 33.69 mln barrels / day. Head of Market Research & Analysis at Gunvor Group David Fyfe believes OPEC is very close to the production level of 34 mln barrels / day. Notably, Iran's current daily output is 3.8 mln barrels and this volume targeted to reach 4 mln barrels / day. In addition, upward trend of US commercial oil reserves, active oil wells and daily production volume continue.

Notably, although in G-20 Summit in China Saudi Arabia and Russia signed an agreement on the regulation of oil markets, later energy ministers of both countries said there is no reason to reduce production.

In addition to these facts, according to the "JPMorgan" Bank reports China's strategic oil reserves are close to the maximum extent.Up to date, China requested 1 million barrels of oil per day in order to increase strategic reserves.

According to the bank due to the maximum limit of strategic reserves from September China's oil imports will be reduced by 15 % or 1,2 mln barrels/day.

Analytical group of Report believes, if positive result will not be achieved from OPEC summit in Algeria, the oil price may be reduced to 20-30/bbl range.