More oil, fuel cheap

More oil, fuel cheap

World December 30, 2016 07:12

- The probability of a fall in prices of oil and fuel ultimately cost increases. According to Energy Agency IEA oil stocks available in the near future only increase.

The oil price bounces moment precisely because traders were expecting a deficit. In November, members of oil cartel OPEC and major supplier Russia came to an agreement to limit production.

Research by the International Energy Agency (IEA) now appears that the growth of the stock in addition continues until at least next year. With more supply means that over time lower prices, ultimately to the pump.

More and more oil companies in the United States resume production since the price of $ 27 to $ 50 is through increased. Simultaneously, the IEA sees a decline in the demand for crude oil, mainly due to the continuing flat economic growth.

'As a result, stocks of oil to levels have risen that we have never seen before,' the energy institute.

Analysts at BNP Paribas also see a lower rate for a longer time. Trading Petro Matrix see that especially non-OPEC countries like Russia be able to adapt their production much more quickly to lower oil prices: they can continue to deliver at lower cost.

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