Stocks of crude oil in US sharply increased

Baku. 17 November. REPORT.AZ/ Stocks of crude oil in the United States rose by 5.274 million barrels in the week ended November 11th 2016.

Report informs citing the Russian media, US Energy Information Administration (EIA) declares.

The report led to decline in oil prices as analysts forecasted a total increase of 1.5 million barrel. However, on November 15, major producers of the Organization of the Petroleum Exporting Countries (OPEC) made a statement to resolve disputes and so, oil prices up over 5% and exceeded 47 USD/barrel in the commodity exchanges. However, after EIA report, the prices down to 46.5 USD.

Notably, the member countries will not determine production quota until OPEC Vienna summit November 30. Tomorrow, informal meetings will be held at the Gas Exporting Countries Forum in Doha, Qatar, regarding production freeze of several countries, including Russia and Saudi Arabia.

Analysts expect failure in the OPEC Vienna summit stating Iran, Iraq, Nigeria and Libya will not support the agreement on production freeze. Moreover, Russia's indefinite issue makes difficult to reach an agreement.

The analytical group of Report News Agency believes, if OPEC Vienna summit ends in failure, oil price will down to 40 USD/barrel.