Oil prices are breaking records: what to expect next
By the evening of April 23, during trading on the London Stock Exchange, the price of Brent crude oil reached a record high and exceeded $ 75 per barrel. Transactions were carried out with futures for delivery in June 2018. The price has not reached such a high mark since 2014.
The increase in oil prices is certainly beneficial for Russia. A number of experts predicted further price dynamics and suggested several scenarios.
Reasons for rising oil prices
Among the reasons that caused the increase in oil prices, a number of economic и political factors.
Significant role was played by OPEC countries' compliance with the agreement on the limitation of production. This allows you to keep the price at a consistently high level and gradually increase it steadily. Mention is also made of a decrease of about a quarter of Venezuelan oil production, which significantly reduced the total supply in the oil market.
Another reason for the rise in price is called growing demand. Particularly pleased with the increase in consumption of petroleum products in China, which is considered the largest consumer market.
Experts also mention Russia's withdrawal from a leading position in oil production, which it occupied for 11 months. Now Saudi Arabia is on the first line.
Oddly enough, but some experts believe that the increase affected news from the Middle East about the death in Yemen of the Hussite leader Saleh Al-Sammad as a result of a Saudi strike.
Others believe that the fall in oil prices since 2014 was largely speculative. Natural causes could not lead to a decrease in excess of 6-7%. Now, oil is simply returning to its real value.
What should be expected in the future?
Leading specialist of the analytical company Analytics Online Nikolai Kotov believes that $ 75 is far from the limit. He believes that growth will continue and in 3 years will reach $ 100 per barrel.
Investment analyst Vladimir Rozhankovsky believes that the previous fall in prices was speculative, and now prices are stabilizing at 65-75 dollars per barrel. This level is acceptable for oil production in the classical way, and for shale deposits, where the cost of development is higher.
Mikhail Mashchenko believes that it is worth paying closer attention to expanding the expansion of the United States into the oil market of Europe and China. They are steadily increasing the level of production and are making great efforts to reduce production costs.
The only thing absolutely all experts agree with is the beneficial effect of the rise in oil prices on the Russian economy. An increase in the profits of oil companies means an increase in government revenues. And additional funds can be invested in technical rearmament and social sphere.
But do not relax, because the price of oil is volatile, like the weather, and a price decline may suddenly fall after its increase.
The increase in oil prices is certainly beneficial for Russia. A number of experts predicted further price dynamics and suggested several scenarios.
Reasons for rising oil prices
Among the reasons that caused the increase in oil prices, a number of economic и political factors.
Significant role was played by OPEC countries' compliance with the agreement on the limitation of production. This allows you to keep the price at a consistently high level and gradually increase it steadily. Mention is also made of a decrease of about a quarter of Venezuelan oil production, which significantly reduced the total supply in the oil market.
Another reason for the rise in price is called growing demand. Particularly pleased with the increase in consumption of petroleum products in China, which is considered the largest consumer market.
Experts also mention Russia's withdrawal from a leading position in oil production, which it occupied for 11 months. Now Saudi Arabia is on the first line.
Oddly enough, but some experts believe that the increase affected news from the Middle East about the death in Yemen of the Hussite leader Saleh Al-Sammad as a result of a Saudi strike.
Others believe that the fall in oil prices since 2014 was largely speculative. Natural causes could not lead to a decrease in excess of 6-7%. Now, oil is simply returning to its real value.
What should be expected in the future?
Leading specialist of the analytical company Analytics Online Nikolai Kotov believes that $ 75 is far from the limit. He believes that growth will continue and in 3 years will reach $ 100 per barrel.
Investment analyst Vladimir Rozhankovsky believes that the previous fall in prices was speculative, and now prices are stabilizing at 65-75 dollars per barrel. This level is acceptable for oil production in the classical way, and for shale deposits, where the cost of development is higher.
Mikhail Mashchenko believes that it is worth paying closer attention to expanding the expansion of the United States into the oil market of Europe and China. They are steadily increasing the level of production and are making great efforts to reduce production costs.
The only thing absolutely all experts agree with is the beneficial effect of the rise in oil prices on the Russian economy. An increase in the profits of oil companies means an increase in government revenues. And additional funds can be invested in technical rearmament and social sphere.
But do not relax, because the price of oil is volatile, like the weather, and a price decline may suddenly fall after its increase.
Information