Baku, Azerbaijan, July 8
By Sara Israfilbayova – Trend:
OPEC+ would like to stay around the price target of US$70 per barrel, Alessandro Bacci, Oil and Gas Analyst at GlobalData, told Trend.
“The dynamics of the markets seems to suggest a range-bound price environment similar to the one that we have seen in the last two years,” Bacci said.
Should the global economy enter a recession, oil consumption will be “lower raising inventory levels and depressing again the prices”, according to the expert.
He noted that today there are three main factors affecting the market, namely the trade negotiations between the US and China, monetary policies developments involving interest rates cuts, and geopolitical issues in various oil-producing countries.
A decision was passed in Vienna on July 2 regarding the extension of the agreement on the reduction of oil production by the countries of OPEC and non-members of the cartel until the end of the first quarter of 2020.
At the end of 2018, OPEC and a number of non-affiliated countries (OPEC+) decided to modernize the terms of the agreement on reducing oil production, which has been in force since the beginning of 2017. The countries agreed to reduce their production by a total of 1.2 million barrels per day from the level of October 2018.
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