UBS Bank: If OPEC+ not extended, oil immediately to get cheaper

Baku. 4 October. REPORT.AZ/ "If the OPEC+ agreement is not extended, oil prices to fall immediately".

Report informs, head of commodities and Asia-Pacific currencies at UBS’s wealth-management unit in Hong Kong Dominic Schnider said.

"I think that OPEC+ members will fulfill their obligations and will probably extend the agreement for a period of not 3, but 6 months. The price of oil this year may rise to $ 60 per barrel against the background of tensions with Iran, Iraq and Venezuela. The main problems will arise in 2018. If the OPEC+ is extended, average oil price may remain at $ 55/barrel next year. Otherwise, oil will immediately get cheaper”, Schnider said.

According to him, oil production in the United States expected to increase in 2018: "That is why OPEC members can not end the deal by late March”.

In the case of Russia, Schnider said that the country's record achievement in 2016 would be difficult to achieve oil production. That is why Russia is more interested in price of oil rather than oil production.