On Monday, the price of Brent crude oil futures fell according to the December by 4.3%, to $ 48.54 a barrel. Such a reduction provoked a serious outcome of the meeting of the High Level Committee, with the participation of oil-producing countries, both within and outside OPEC. Creating such a committee required the Algiers Agreement. Among the countries that are not members of the cartel, there were only Azerbaijan, Brazil, Kazakhstan, Mexico, Oman and the Russian Federation.
Countries discussed the future trends in the oil market and the factors that will affect the dynamics of prices. In general, all agreed that the demand for oil has risen slightly in 2016, but the imbalance of supply and demand still persists. Due to the low prices of raw materials investment in the industry in 2017 will remain at historically low levels.
Despite the perception that the market situation will improve very slowly without additional intervention, the participants were not prepared to confirm their intention to freeze the oil. Investors interpreted this information as a signal that at the November meeting of the country and will not accept a written agreement on the limitation of production, and selling prices down.
In November, the High-level Committee meet more than once, to hold consultations before the main meeting, so increased volatility will continue until the end of the month in the oil market. This afternoon, the price of Brent crude oil is increasing and amounts to about $ 49.2 per barrel. By the end of the day the growth will continue.
According to the materials of Alpari
