The value of oil standard grade Brent have risen above $50 per barrel, however, the further increase in oil prices should be the main subject of negotiations between the US and Saudi Arabia. This opinion was expressed Director of the analytical Department of “Alpari” Alexander Razuvaev.
He reminds us that “Brent crude (Thursday morning) for the first time since November 4, 2015 exceeded the psychologically important mark of $50 per barrel”. “The formal reason for the rising prices was based on data from U.S. commercial stockpiles for the week ended may 20. They fell by 4.2 million barrels to 537,1 million barrels, or 0.8 percent. Before that, the market expected a contraction of only 2.45 million barrels. Oil production in the United States for the week decreased by 0.27%, or 24 thousand barrels per day, up to 8,767 million barrels,” — said in the review expert.
At the very beginning of the year, he said, voiced the prediction of the exit prices for “black gold” in the corridor of $50-60 before the end of the first half. “The main reason is the break-even point for American shale at $55 per barrel, plus the monetary policy of the fed (U.S. Central Bank — ed.) which was much smoother than expected. (However) a Further rise in oil prices should be the main subject of negotiations between the US and Saudi Arabia,” — says Razuvaev.
In addition, he said, “$50 per barrel is the price included in the Russian budget for the current year”.
The analyst also doubts that the “oil era in the world over.” “No fundamental changes in the structure of the world economy did not happen. And the cost plus an adequate return on the private investment yields a corridor of $60-100. It needs to focus investors”, — the expert believes.
