The increase in oil prices on world markets in 2016 has become the longest in the last five years, growth was observed for four consecutive months. This writes the Agency Bloomberg. Compared to 12-year low reached in February, oil prices increased by 85 percent.
This jump is explained by the gradual weakening of demand in the market. In particular, in the US, manufacturers were forced to reduce production due to low profitability. In Canada the extraction prevent forest fires, and in Nigeria — the terrorists ‘ actions.
At 14:40 GMT, Tuesday, 31 may Brent crude on London’s ICE trading at 49.53 USD per barrel, which is 0.46 percent lower than the previous day.
Higher prices does not prevent even the absence of an agreement between OPEC countries, which together produce about one third of all oil in the world. It is expected that at the next meeting of the organization on June 2, agreement is not reached, the Agency said.
May 16 Bank Goldman Sachs published forecasts that oil prices will reach $ 45 per barrel on average for the year because of falling production. In turn, Citigroup predicting that the oil price will rise to $ 50 in the third quarter and to $ 65 next year.
