Expert: Oil price may increase to $60/barrel after summer
Baku, Azerbaijan, Apr. 1
By Elena Kosolapova - Trend:
The participants of the upcoming negotiations of oil-producing countries in Doha, Qatar, April 17 will be able to come to an agreement to freeze the oil production level, since all they want stability in oil prices and no one is satisfied with the current jumps in prices, Oleg Yegorov, the senior fellow at the Institute of Economics of the Kazakh Education and Science Ministry, told Trend by phone Apr. 1.
"The agreement will play into the hands of all oil producing countries," he said.
The expert said that in conditions of extremely low oil prices, all oil companies of the world suspended investments into new projects and development of their production, which suggests that all of them lose a lot in the current situation.
"Therefore, this issue will be discussed very profoundly at the meeting in Doha," said Yegorov.
The analyst said that this meeting will help to stabilize oil prices. The very fact of its holding has caused the rise in oil prices to the current $40-$41 per barrel, said Yegorov.
The price of the June futures for Brent crude oil was $39.96 per barrel Apr. 1.
"No one expects oil prices to rise to $100," the expert said. "But I believe that the price of $40 per barrel will be stable in the future as well, and after the summer period, an increase to $60 is possible."
Speaking about slowing growth of demand on the global oil market, and in particular in such major oil-consuming countries as China and India, Yegorov said that this situation could very quickly improve, which will help balance supply and demand worldwide.
"If any enterprises were closed somewhere for some time due to very high oil prices, now they can work under new conditions and prices," the expert said.