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British Ooxeira: the oil market is on its way to recovery with reduced production of shale

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British Ooxeira: the oil market is on its way to recovery with reduced production of shale

November 11, 2015 0

Rubin emphasized Nobel Ooxeira director of British consultancy firm, that the crude oil market is on its way to recovery, after hitting record levels, the impact of the decline in the case of an oversupply which exhausted the market.

The "Nobel" that many of the international financial institutions, is betting on the high level of oil prices in the near term, and finally released the report of the International Energy Agency is talking about the restoration of the crude oil market to high levels before 2020.

"The growth in demand is the key word in the market equilibrium restored soon, especially with the accelerated growth in many countries of the developing world, and in spite of some of the indicators negative for growth in China's growth, the rate remains high despite falling to less than 7%."

He added that "shrinking state oversupply indicators have begun to emerge strongly with the contraction of the US shale production and stop drilling rigs and low prices, represents more pressure on high production owners cost, and the investments have been affected in a big way and the latest reports indicate that the abolition of British Petroleum (BP) to 80 projects this year, because of low prices and the high cost of production, including preclude make profits but increases bleeding losses suffered by the giant company. "

The International Energy Agency has predicted yesterday high demand about 900 thousand barrels per day per year until 2020, according to visualize described Bantrza.

Fatih Birol, Executive Director, told energy to speaking ahead of the report called World Energy Outlook "We expect price rises gradually to $ 80 near 2020. According to our estimates that oil investments this year will fall more than 20%. But this decline will continue in the next year also, and perhaps this is the most important.

In the past 25 years have never seen two consecutive years of declining investments, this may have repercussions on the oil market in the coming years. "

"Reuters" quoted Birol as saying at a press conference "in the next ten years even if oil demand growth to zero .. the mere increase production to offset the decline in existing fields will require investments of us at the level of $ 650 billion."

Crude oil prices have tended to maintain the relative heights, having succeeded the statements issued by the Organization of Petroleum Exporting Countries "OPEC" to inspire confidence in the market, as it confirmed the existence of strong indications of improvement in global demand levels at the beginning of next year 2016.

It coincided "OPEC" expectations with US data confirming the American production decline widely in the coming months, but the negative factors are still operating its weight in the market, particularly the weak indicators of the Chinese economy and the continuing oversupply and rising US oil inventories.

Because of the conflict of the market from the opposite and wide factors influencing oil prices gains have remained limited to stays of Brent crude at around $ 47 and US crude around $ 44 a barrel.

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