Oil goes down again: Brent fell below $ 51 per barrel. Commentary from Nina Kozlova in Seychas.ru

On 26 May, Brent Crude Futures fell to $ 50.89 per barrel in the morning. The price of "black gold" fell below $ 51 for the first time since 15 May 2017. Meanwhile, the July contracts for WTI crude oil decreased to $ 48.9 per barrel. Experts note that the decline in value occurred against the background of the prolongation of the deal between major exporting countries for reduction in production of crude for the next 9 months. How long will the reduction trend in oil last in your opinion? Why does the deal prolongation not "hold" the price?

Nina Kozlova

General Director of FinExpertiza

- The prolongation of the reduction period due to "OPEC +" countries is no longer enough to raise oil prices. Many countries have already taken advantage of the past agreement including Russia thanks to a price higher than the budgeted parameters, and the USA that reduced profitability and increased production of shale oil.

Now another goal of the agreement is to prevent the collapse of prices, keeping them in a corridor acceptable for "OPEC +" countries at the level of $ 50 - 55, which still will not allow for much acceleration in the production of shale oil in the USA. The oil price will stop declining and return to the indicated corridor in the near future.