Baku, Azerbaijan, Nov.4
By Leman Zeynalova – Trend:
The modest upward correction in oil prices reflects expectations of a continued decline in oil production in the United States, the European Bank for Reconstruction and Development (EBRD) said in its Regional Economic Prospects report.
Producers in the US need prices of around $60-$65 per barrel to maintain sufficient profitability and justify the investment costs, as well as the apparent willingness of Saudi Arabia to participate in a coordinated oil production freeze or production cuts, according to the report.
The projections assume a continued but low upward movement of prices of oil and other commodities, said EBRD.
“A modest recovery of oil prices from the lows seen in the first quarter of 2016 have contributed to a stronger outlook in Russia,” said the report. “Yet energy and commodity prices remain low by recent standards, which is benefiting the new EU members.”
Oil prices edged up on Nov.4, stabilizing after five straight days of falls.
Brent crude was up by 0.28 percent, at $46.48 per barrel at 05:15 GMT. US West Texas Intermediate (WTI) futures rose by 0.25 percent, to $44.77.