FXStreet – The price of a Barrel of Brent Oil is expected to recover after the slip in this week slightly, although the U.S. Department of energy, is likely to raise its forecast for U.S. Oil production again, said Barbara Lambrecht, Commerzbank expert.
The Oil market is all about currently to the reduction of Production, the large producer countries: Allows you to see inventories decrease, and they will be extended? The answers to these two questions are highly correlated. So far, the crowded camps were dismantled, is due to the surprisingly fast recovery in U.S. production. The U.S. Department of energy, EIA has revised its forecasts in the last few months significantly, and due to the last-again, good Numbers, you will increase your forecast for next week and probably again.
It follows, therefore, that OPEC will need to extend the reduction of Production, “” if you want to actually reduce the massive Overhang of inventories. Against this Background, many expect the market with a renewal of the agreement, which is why the Oil prices to the OPEC meeting at the end of may sideways, are likely to tend. In the course of the second half of the year, the discipline is likely to ease in the implementation of the agreement, but gradually.
So the Russian Oil industry is under pressure to increase their production. The battle for market shares, which is likely to push the price for a Barrel of Brent sustainable under 50 USD.
** FXStreet News Editorial, FXStreet**