Report: Oil prices will decline

Baku. 13 April. REPORT.AZ/ Positive dynamics of oil prices observed in recent days on the world market will decline. Analytical Group of Report thinks that growth in prices at this stage is due to the expectations of a positive outcome of the meeting of oil-producing countries in Doha on Sunday. Note that currently, Brent crude is trading at 44 USD / barrel, which is by 63% higher than the minimum level in 2016.

It is to be recalled that oil producing countries after the summit in Doha are expected to freeze oil production.

Freezing production at the current level does not bode well for the oil market.Most of the countries increased production almost to the historical record.Oil production in Russia, Saudi Arabia and Iran has increased in recent months.Freezing production will mean continued high level of oil supply in the market, and although at first the oil markets will react positively to it, then the price will fall sharply.

Yesterday, 12 April, the American Petroleum Institute (API) published the weekly report on US oil reserves, according to which in last week crude oil inventories increased by 6.22 mln barrels.At the same time, the growth forecasted in the amount of 0.73 mln barrels.The news immediately provoked a reduction in the cost of Brent crude oil by 1 USD - to 43.5 USD / barrel, but then the price started to rise again.Analytical Group of Report believes that oil prices are rising speculative, after a short time, they will begin to fall and reach 30 USD / barrel.