Oil prices know no "limits"
May 16, 2018 | 09:47 |254
Oil prices are growing by leaps and bounds. A week ago in a commentary on the situation on the oil market, ORIENT wrote that the price for Brent crude oil took a psychologically significant height of $ 75 per barrel and is preparing to challenge the next mark - $ 76. But the events in these days developed so rapidly that taking a mark of $ 76 per barrel went unnoticed. Oil prices "took a breath," only surpassing $ 78, and, according to analysts, "hoard strength" to soar to $ 80 per barrel. June futures for Brent crude rose to $ 78.29 per barrel by the morning of May 15th, while the quotations of the June contract for WTI oil amounted to $ 70.98 per barrel. Such a high price for black gold has not been since November 2014. At the same time, most analysts agree that all conditions now contribute to the growth of oil prices. The US withdrew from a nuclear deal with Iran and said they would take restrictive measures against Iranian oil. In addition, OPEC in the monthly report stated its readiness to take measures to maintain the stability of the oil market. In this connection, a number of experts express concerns about the OPEC + agreement, as it is likely that some participants of the deal can calculate the goals achieved and wish to withdraw from the agreement. While there are no such signals, it is impossible to completely exclude the possibility of such a development of events. After all, there are countries in the OPEC + agreement that fear that rising prices for oil can be used by states that do not participate in an agreement to limit oil production. It seems that for oil and gas countries, albeit slowly, the time for high energy prices returns. The whole question is, how stable is this trend and how long will it last?Nury AMANOV
