Mon, 09 Jan 2017 07:18:00 +0400
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This year, the average cost of Brent oil is expected to be at $53,5 per barrel. This is what the latest EIA report says. This means that the forecast has improved relative to the previous one. For the sake of comparison, the average price of Brent oil in 2016 was at $43,74 per barrel. In 2018, the average price is expected to exceed $56 per barrel.
As you probably know, OPEC held another summit in Vienna on Wednesday. As the result of the mentioned OPEC summit, they agreed to cap their oil production at 32,5 million barrels a day. Given the latest production figures coming from OPEC, they cartel is going to cut their total oil production by as much as 1.2 million barrels per day to avoid exceeding the 32,5-million-bpd threshold. At the same time, the cartel expects Russia and some other big oil producers to cut their oil production as well.