Traders from around the globe fear that countries-members of OPEC may decide to rise quotes on recovery of “black gold” during their meetings in Vienna.
Investors are concerned that if such decision is made by OPEC members in Austrian capital, petroleum may drop in price.
As of 01 June 2016, the price for August future of Brent North Sea oil blend has been reduced by 0.94 percent - to 49.42 dollars per barrel. Speaking about price for July futures of WTI oil brand, it has been reduced by 0.90 percent - to 48.67 dollars per barrel.
Most experts believe that the decision on changing the volume of “black gold” recovery should not be predicted by results of OPEC meeting.
According to traders, there is a fear at the market spread that representatives of the organization can make a final decision about rising quotes for oil recovery. However, most market participants suppose that the organization will rather discuss its market share, than stipulate price rise of “black gold”.
Analysts of Morgan Stanley admit that a big number of OPEC member plan to increase oil recovery, and reduction of supply can become an obstacle in achieving this goal. Particularly, many oil producers in the Middle East, including Saudi Arabia, Iraq, Iran, and United Arab Emirates, have increased the volume of petroleum supplied to Asian countries in their struggle for a market share.
Russia Finds Freezing of Oil Prices Irrelevant
Russian ambassador Vladimir Voronkov believes that the question of freezing the price of “black gold” has lost its topicality and is unlikely to be discussed at the session of countries-members of OPEC in Vienna on June 02.
“In my opinion, further discussion of freezing oil prices has lost any topicality because of natural price rise and achievement by BRENT oil blend the figure of 50 dollars per barrel. In this connection, the issue will probably be closed or raised again in case of next rapid price drop. Therefore, we should not expect any development in this reference,” he said.
According to the diplomat, current trend of price rise for oil is acceptable for most oil-producing players, and it does not require any additional effort.
“It is worth mentioning that oil price has recently set at the point of 50 dollars per barrel,” highlight experts of Masterforex-V Academy.
