19.02.201911:20 Forex Analysis & Reviews: The cost of oil can temporarily reach $ 70 per barrel

According to experts of a major analytical company JBC Energy, oil prices in the short term may increase to $ 70 per barrel, and then they will return to previous levels.

On Monday, February 18, oil quotes reached a three-month high against the background of optimism in negotiations between the US and China, as well as news of active cuts in oil production by Saudi Arabia. After the fall in the cost of Brent oil by more than 42% from the beginning of October to the end of December 2018, this North Sea variety has risen in price by almost 34%. Oil prices were supported by both rally in stock markets and the belief that Washington and Beijing would not impose mutual restrictions.

According to analysts, the reduction of world oil supply, as well as progress in trade negotiations between the United States and China, will further contribute to the growth of oil prices. Support for the black gold market will continue to provide the OPEC report, according to which the volume of production by the countries of the cartel fell in January by 800 thousand barrels, to 30.81 million barrels per day. Recall that the lion's share of the decline in oil production fell on Saudi Arabia.

JBC Energy believes that there are a number of factors capable of boosting oil prices in the short term. In addition to positive news, these include shipments. For example, in April of this year, the Angolan authorities plan to carry out 43 shipments of raw materials in the amount of 41.3 million barrels, at 1.38 barrels per day. This is less than in March 2019, which is scheduled for 1.45 million barrels per day.

By Tuesday, February 19, WTI oil prices showed an increase of 0.85%, to $ 56.06 a barrel. The cost of Brent crude increased by 0.3%, to $ 66.45 a barrel. Earlier, quotes reached a high of $ 66.83, almost approaching the peak of November 2018.