Oil prices fell on Thursday as stocks in the US grew by 3,097 million. barrels, despite OPEC's efforts to reduce production and tighten the market. This year, the Organization of Petroleum Exporting Countries (OPEC) and other producers like Russia agreed to reduce their yields by a total of 1.8m barrels a day to support the price of black gold.
The OPEC-led deal helped fuel prices rise from $ 30 to $ 40 a barrel. However, market participants believe that supplies are still more than sufficient for the market and this leads to surpluses and a fall in price.
Wall Street analysts believe the price of oil will remain in the range of $ 50 to $ 55 a barrel over the next two years. This is, of course, the perfect option for OPEC to extend its short-term mining program, and the US will be content with the production of the current levels.
If OPEC gives up the short-yield deal, the price of black gold can very quickly return to the level of about $ 30 a barrel.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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