The past six months, experts around the world are trying to find the answer to one question: whether country-the oil producers to agree to reduce its production? Co-owner of new York’s Again Capital John Kilduff told about his vision of further developments in the oil industry, Vesti.Economy.
According to experts, the most intelligent position is occupied by Russia, which, welcoming the decision of OPEC to reduce oil production, in reality, increased its own production.
“Russia probably was the most cunning in this matter. Various officials of the country have made conflicting statements on the reduction of production in the real increase in production volume in the country in recent weeks,” said a partner at Again Capital Kilduff.
He also said that OPEC countries do not comply with the terms of the agreement and, instead of reducing oil production to 32.5 million barrels, it increased to 34 million barrels per day.
Kilduff warns you when the market will finally realize that OPEC is “bluffing” about reducing production, and given the fact that the US has already started the growth in rig count in shale oil production, the oil prices in 2017 will fall to new record levels.
“The world market is again saturated. Now a growing number of agreements on storing oil in tankers, that only exacerbates the oversupply. Against this background, the price of WTI should trade close to $25, returning to the end of the year to the minimum value of $own 26.05 per barrel”, – concludes Kilduff.