According to the data presented by American Petroleum Institute (API) yesterday, oil inventories in the USA have grown by 6.2 million barrels against the decline of 4.3 million barrels a week before. This negative for the oil prices news has prevented the rise in the price of crude oil Brent above the level of 44.78. Oil prices were also negatively affected by the information that Russia and Saudi Arabia had reached agreement to freeze oil production. In the result, the price went back to the level of 44.18 USD per barrel, where it is still traded at the moment.
Analysts expect that oil prices will vary from 30 to 60 USD per a barrel of crude oil Brent. Reduction in the cost of production and decrease of investment costs may cause the rise in oil prices; however, oversupply of oil may trigger the decline in oil prices.
Currently, market participants are waiting for the upcoming meeting of the representatives of oil producing countries in Doha. If meeting participants reach agreement about freezing oil production it will be a positive factor for oil prices. However, this fact will provide only temporary support to oil prices as oversupply of oil in the world will increase.
If participants of the meeting express intention to continue decline of oil production, oil prices will receive a stronger support. In this case the forecast of 50-60 USD per barrel can be correct. Otherwise, increasing oversupply of oil in the world will bring oil prices back to the downtrend. In March 2016 ОПЕC increased production of oil up to 32.38 million barrels per day with the help of Iran, as this country increased oil production to 3.23 million barrels per day in March, which is 110 thousand barrels more than in February. Iran plans to reach the level of 4 million barrels per day.
Today, market participant wait for the report of the US Department of energy at 16:30 (GMT+2). The increase in stock of oil and oil products will have a negative impact on oil prices.

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