Azerbaijan, Baku, Aug. 18 / Trend A.Badalova /
OPEC will not cut oil production quotas, while the price on North Sea Brent oil will be $110 per barrel and higher, the U.S. bank JP Morgan reports.
"With Brent trading above $110/bbl in at the time of writing, we do not expect any OPEC members to move to reduce production, given healthy refiner demand for OPEC crude.
But should prices fall substantially, and OPEC member's budget breakeven price levels are reached the burden of production cuts will be on the gulf trio / Saudi Arabia, Kuwait and the UAE /," the bank's analysts said in a recent report.
Oil prices on world markets following the collapse last week have started to gradually recover. The price of Brent again reached $110 per barrel on Aug.17.
Following the trading on Aug.17, the September futures price on WTI rose by $0.93 to $87.58 per barrel on the New York Mercantile Exchange. On the London Stock Exchange price, the October futures for Brent rose by $1.47 to $110.6 per barrel.
Last week, OPEC voiced the possibility of holding an emergency meeting if oil prices continue to fall. However, according to the Iranian foreign minister, the market is well supplied and there is no need to raise production quotas by OPEC.
JP Morgan believes OPEC will only act after the price of Brent has dropped to $90 per barrel.