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Saturday, 22 July 2017

What can we expect for oil in the second half of the year?

For most of the first half of the year, it seemed that oil had found its balance about $50 a barrel of American sort. OPEC respects the mining constraint, with Saudi Arabia dropping its production below 10 million barrels per day. The change occurred only when stocks in the US began to grow in the second quarter. And the price of oil fell to 42.50 dollars.
Achieving a balance of the oil market remains an open question for the second half of the year. US companies report a reduction in shale oil production costs, resulting in increased drilling and production.
According to some analysts, oil is likely to reach levels of 45-55 dollars. Expectations are for this range to be maintained by the end of 2018, notably until the OPEC and Russia agreements are in force. But the fact that the price of oil comes down in a lower price range does not mean that there is a tendency for a strong depreciation of the raw material.

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