Anna Zaitseva Anna Zaitseva analyst called the factors that will contribute to the increase in oil prices. According to her, at the beginning of August, prices decreased by approximately seven percent due to the fact that companies do not want to risk, the Prime Agency reports.
“According to the latest data, the number of pure long positions on crude oil decreased to the minimum level from March 2020, indicating growing doubts among investors regarding the further prospects for oil,” the specialist noted.
Zaitseva added that market players fear are harmlessly, taking into account the epidemiological situation in a number of major countries during a pandemic period with all the resulting restrictions, especially in China. She explained that there were signs of deceleration of economic growth, the index of business activity falls.
In addition, the sale of oil from government strategic resources was announced to support the processing and deterrent sector, an analyst added. The decisions of investors also influenced the call of President Joe Bayiden to OPEC in increasing oil production as the economy recovered after the coronavirus.
Among the favorable forecasts of Zaitsev, called the preservation of world demand for oil according to EIA, MEA and OPEC. Also, an additional support factor can be the growth of geopolitical tension in the Middle East, in the event of an escalation of conflict between Israel and Iran, the price can get a pulse up.
Earlier, the Norwegian analytical company RYSTAD ENERGY predicted Russia record volumes of oil and gas condensate for the next fly. It is expected that a record high in 2023 will be the average annual level of production – 12.16 million barrels per day. Thus, for the year about 600 million tons of oil and condensate will be mined, despite the fact that the current peak indicator is 568 million tons in 2019.