Oil prices continue to fall

 

 

 

Oil prices continue to fall World oil prices are continuing to fall. Prices are falling mainly due to the growth of oil production in Russia and Iraq. According to Bloomberg, the volume of oil exports in Iraq and Russia rose to its highest level in the last decade.Daily oil production in Russia in December 2014 increased by 0.3% and mounted to 10.7 million barrels. Iraq exported 2.9 million barrels a day in December. The deputy director of the Institute for Energy Strategy, Alexei Belogoryev believes that the decline in oil prices could not be a long-term trend. "This year the prices will increase. In my estimation, they will go up to about $ 80 per barrel o f Brent oil," he said.At the same time, he noted that in September only few people predicted what was going to happen in October-November. According to him, the trend was formed by three fundamental factors. "Firstly, the US Federal Reserve has ceased the mass emission of dollars, which provided a low US dollar exchange rate and free capital inflow to the oil market. Secondly, the amelioration of relations between Iran and Western countries. Thirdly, the United States had very good macroeconomic figures, reduced oil imports with the help of a sharp rise in domestic production of oil," Belogoryev said. 

World oil prices are continuing to fall. Prices are falling mainly due to the growth of oil production in Russia and Iraq. According to Bloomberg, the volume of oil exports in Iraq and Russia rose to its highest level in the last decade.
Daily oil production in Russia in December 2014 increased by 0.3% and mounted to 10.7 million barrels. Iraq exported 2.9 million barrels a day in December. 
The deputy director of the Institute for Energy Strategy, Alexei Belogoryev believes that the decline in oil prices could not be a long-term trend. "This year the prices will increase. In my estimation, they will go up to about $ 80 per barrel o f Brent oil," he said.
At the same time, he noted that in September only few people predicted what was going to happen in October-November. 
According to him, the trend was formed by three fundamental factors. "Firstly, the US Federal Reserve has ceased the mass emission of dollars, which provided a low US dollar exchange rate and free capital inflow to the oil market. Secondly, the amelioration of relations between Iran and Western countries. Thirdly, the United States had very good macroeconomic figures, reduced oil imports with the help of a sharp rise in domestic production of oil," Belogoryev said.