Expectations of a price range for oil between $ 50 and $ 60 a barrel

20/10/2016 0:00

BAGHDAD / Shokran Fatlawi / Farah pumice
With scheduling a meeting of Petroleum Exporting Countries "OPEC" in the Austrian capital of Vienna on the thirtieth of November next, it revealed expectations for a price range for crude between $ 50 and $ 60 a barrel over the next year, as well as other expectations of benefit to reach an agreement between the oil-producing countries on market stability.

 On this subject expressed economic expert, Dr. Ahmed Abrihi optimism that the Organization of Petroleum Exporting reach and cooperation with Russia to freeze production, pointing out that in the event of their agreement on it will begin the surplus to decline gradually, and at the end of 2017 will reach surplus to around 1.2 million barrels.

He Abrihi in an interview for the "morning" the price of oil actually the $ 50 and the bypass has risen, and this scale is the best level since mid-2015, saying: If he continues this improvement, so up the price of oil to $ 70 in the first quarter of 2017, it helps Iraq much. The price of a barrel of Brent crude to $ 51.68 a barrel, while the price of raw materials «OPEC» was $ 46.70 per barrel.

On the possibility that the price of oil continue to rise from the decision taken by OPEC in cooperation with Russia, Abrihi pointed out that the agreement also possible that the improvement in the price is also possible.

He continued, saying: we can not be certain that the surplus in the oil market, for example, will drop in the next month, adding that accountability depends on the Is that the agreement would only be to freeze production or some states will take the initiative to reduce the output bit? , Stressing: But if there is no agreement, it is likely that the surplus up to more than two million barrels per day. Crude prices have surged almost 13 percent since the Organization of the Petroleum Exporting Countries suggested on September 27 to cut production or install her first in eight years time to contain the oversupply
Global.

For his part, oil expert Aqil al-Saadi said that the current Iraqi oil revenues are divided eventually into three parts, the first is the largest to support the state treasury and the second as receivables for companies operating third the cost of production, extraction and maintenance segment.

Saadi pointed out the importance of knowing how to divide citizens fiscal revenue and the real final price at which enters the state treasury, for example, if the sale of barrels of Iraqi crude oil price of $ 40, the net as fall as income will not exceed in the best cases to $ 30, he says.
Also pointed out that Iraq sells oil in a way contracts Term contract, to deal with serious and steadfast customers depends in determining its price up and down depending on the quality of the oil, especially that he sells in three markets are East Asia, Europe and the Americas, so find the price of Iraqi oil ultimately less than the advertised price globally by varying value at $ 30, the sale of oil, Iraq's oil has been sold by 24 dollars, and therefore it can not rely on global prices, but on what the Ministry of oil illustrated the end of each month, minus benefits companies and cost of production and others.

To Deputy Kuwaiti Prime Minister and Finance Minister and Acting Oil Minister Anas Saleh announced that there are expectations that oil prices ranging between $ 50 and $ 60 a barrel over the next 10 or 15 months, pointing out that it is acceptable and logical expectations.

Saleh's comments came on the sidelines of the opening, Sheikh Ahmad Al-Jaber Al Motor Oil of the Kuwait Oil Company.

He expressed optimism about good access to an understanding over the next "OPEC" meeting to be held in Vienna, pointing to the difficulty that the current oil prices and that lasts cancel investments will help the supply and demand equation and reach an acceptable price.

For his part, announced the head of "Gazprom oil" Russian, Alexander Dyukov, that the chances of reaching agreement between the oil-producing countries about the stability of the market has become the largest, now, than it was a year ago.

Dyukov said in a press statement: "I would point out that the chances of reaching these larger agreements, currently, than it was a year ago." Dyukov said the freeze on the level of oil production will ensure the growth of prices, but it would be so intangible because of accumulated existing crude reserves.

He pointed out that "if we tried to simulate a situation, what can happen in the event of reach" OPEC "countries to an agreement on a freeze or reduction in the volume of production, I believe that this will give a certain boost. I do not think that this rise in oil prices would be great, thanks to their the fact that at the present time we have accumulated a large surplus stocks in the market. in order to accommodate the market this surplus should be some time. "

In the meantime, the American Petroleum Institute announced that US inventories of crude fell unexpectedly last week while gasoline stocks increased and decreased distillate stocks.

The US crude stocks fell 3.8 million barrels over the week to 467.1 million, compared with analysts' forecasts that more than 2.7 million barrels. Zkrmahd oil and crude stocks at the delivery point of Cushing, Oklahoma fell by two million barrels.

Gasoline inventories rose 929 thousand barrels while analysts forecast in a Reuters poll to fall 1.3 million barrels. The Petroleum Institute data showed a decline in distillate stocks, which include diesel and heating oil, 2.3 million barrels compared to expectations that the drop of 1.6 million barrels.

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