Before the meeting of the Organization of countries — exporters of oil, OPEC was only a few weeks and its partners do not demonstrate a willingness to take more decisive steps to support oil prices, writes Bloomberg.
Experts Citigroup Inc. and BNP Paribas SA warning about a possible collapse of the oil market in early next year in the case of the new formation of excess supply. According to them, the quotes may fall to $ 50 per barrel.
This will aggravate the situation of the OPEC countries such as Venezuela, Iran and Iraq, who are already facing economic crisis and political protests. The price collapse will affect the entire industry, including the shale boom in the US, who led the country into world leaders in oil production.
Morgan Stanley published an even more gloomy prognosis in case of failure of OPEC to cut production. In this case, according to analysts, the price will fall to $ 45 per barrel at the beginning of next year.
Is to say that such a scenario is waiting and many other experts. Perhaps the price of oil started falling now, but there is a view that Saudi Aramco prior to the IPO that will not happen.
In a successful placement company is interested in very many, including, of course, and banks, therefore, to maintain relatively high oil prices thrown.
other factors that can affect oil quotations, it is worth noting the General situation on the markets. Do not forget that the crude oil futures is a financial asset and its fluctuations often depend on sentiment in the financial markets in General.
Themselves, oil prices almost never fall, the decrease in quotations often occurs along with the stock indexes.
Therefore, in the case of the deterioration of the situation on the markets, oil prices can go down even if more active actions of the OPEC+.
