The expert described the condition for the increase in oil prices to $50

© AP Photo / Hasan JamaliДобыча oil. Archival photoThe expert described the condition for the increase in oil prices to $50© AP Photo / Hasan Jamali

Organization of countries-exporters of oil (OPEC) should increase the amount of the reduction in production by 700 thousand barrels a day to oil prices returned to $ 50 per barrel, the Chairman of FGE, a consulting company, Fereydoon Fesharaki (Fereidun Fesharaki).

According to the head of FGE, which leads Bloomberg, Saudi Arabia is the only oil-producing country, which could significantly reduce production of «black gold». «Highly likely», it will do so to raise oil prices, he said.

«The Saudis can afford to drop 500-600 thousand barrels per day», — quotes Agency the words Fesharaki. Chapter FGE believes that if Saudi Arabia will not start additional production cuts, oil prices could fall to $ 40 per barrel or lower.

As at 09.01 GMT the cost of the August futures for North sea petroleum mix of mark Brent has decreased on 0,13% to 44.76 USD per barrel. The price of August futures for WTI decreased by 0.12% to 42.48 USD per barrel.

OPEC and a number of not members of the organization countries agreed in late 2016 in Vienna on the reduction of its oil production to total 1.8 million barrels per day from October levels, of which 300 thousand are in Russia. The agreement was concluded for the first half of 2017 with possibility of extension. In may, its validity was extended for nine months until the end of March 2018.

On Wednesday, the Minister of oil of Iran Bijan Zanganeh said that OPEC countries can increase the volume reduction of oil production. According to OPEC, citing secondary sources, in may, oil production in Saudi Arabia was at the level of 9.94 million barrels a day. Total production of the cartel amounted to 32,14 million barrels a day. According to the report, the ten OPEC countries taking on commitments to reduce production (Algeria, Angola, Ecuador, Gabon, Iraq, Kuwait, Qatar, Saudi Arabia, UAE and Venezuela) in may, reduced its total to 1,325 million barrels per day compared with October. Thus, OPEC has fulfilled its obligations under the agreement by 106%.

The expert described the condition for the increase in oil prices to $50Go to photobacteria oil revenues and other revenues

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