Next week, the barrel price of North Sea benchmark Brent will return to the $81-83 range. This forecast was given to socialbites.ca by BCS World of Investments stock market expert Igor Galaktionov on November 16, commenting on the collapse in oil prices. The cost of a barrel of Brent then dropped to $76.75, or 5.46%.
“Fundamentally, the market continues to run a deficit, as recently confirmed by the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC). OPEC+ ministers are expected to hold a meeting at the end of next week. It is possible that the alliance will extend the voluntary cut in oil production until the beginning of 2024. “This could support commodity prices and push them higher,” he commented.
In its November report, the IEA predicted that there will be a significant world oil shortage by the end of this year due to further reductions in oil supplies from Russia and Saudi Arabia. In November, Russian Deputy Prime Minister Alexander Novak announced that Moscow would continue an additional voluntary cut of 300 thousand barrels per day in the supply of oil and oil products to world markets until the end of 2023. On October 4, Saudi Arabia decided to continue implementing measures to voluntarily reduce oil production by 1 million barrels per day by the end of 2023. OPEC+ will reduce total oil production by about 1.4 million barrels per day to 40.46 million barrels per day from 2024, the alliance reported in June. The alliance includes Russia, Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Sudan and South Sudan.
Is oil scarcity beneficial to Russia? material “Newspapers.Ru”.
previously economist guess Oil prices until the end of the year.