/ world today news/ The price of oil will change depending on which way the oil market will go, commented a Reuters analyst.
With some options in the development of events, the price may fall to 20 dollars per barrel. However, the analyst generally sees two scenarios in the functioning of the market. The first is for Saudi Arabia to restore the OPEC monopoly once the country achieves its economic and geopolitical goals through the imposed price cuts. Analysts and brokers consider this scenario the most expected.
The second option is that the oil market will increasingly move towards normal competitive functioning, where the price will be determined mostly by the highest costs of production, not by the monopoly of OPEC or any individual country. This option may turn out to be less likely, but according to a Reuters analyst, this is exactly how the oil market functioned for almost two decades from 1986 to 2004.
Both scenarios will take a long time. “It is highly unlikely that Saudi Arabia will have just two months to influence Iran and Russia or to completely halt production of US shelf oil. It is also unlikely that the oil market can quickly switch from OPEC dominance to a normal competitive market,” predicts the Reuters analyst. Pictured: Saudi Oil Minister Ali al-Naimi. /RIA “Novosti”
London / Great Britain
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