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    Brent: forecast for oil market from IEA on 11.03.2016

    According to the monthly report of the International Energy Agency (IEA) released on Friday, there are strong risks of decline in the demand of oil in the world despite the rise of oil consumption in India, South Korea, Indonesia and some other countries.

    Although Iraq, Nigeria and UAE have reduced oil production in February, Iran has increased production by 220 000 barrels per day. According to IEA, Iran is unlikely to terminate increasing oil production. At the end of the last month oil minister of Iran, Mr. Bijan Zangane said that the idea to reduce oil production was just a joke.

    However, IEA report has some positive facts. The Agency expects that demand of oil will not changed in 2016, remaining at the level of 1.2 million barrels per day. Production of oil outside OPEC countries can drop by 750 000 barrels per day and the process of return of Iran to the global market can be slower than expected.

    IEA believes that there are signs that the price of oil has reached the bottom. Earlier this week oil minister of UAE said that oil prices force the producers to freeze oil production.

    Market participants had positive reaction to IEA report. Futures for crude oil Brent at ICE Futures went up by 1.4%; spot-price reached the level of 41 USD per barrel.

    Market participants positively assess developments of the oil markets despite the increase in the US oil reserves and mass media’s news about possible cancellation of the meeting scheduled for 20 March between OPEC representatives and the countries, which are not members of OPEC. Russian Energy Minister Alexander Novak said that a new date and location of the meeting has not yet known.

    Today’s news will include Baker Hughes report on the number of operational drilling platforms in the USA at 19:00 GMT 2. The data will be an important indicator of activity in the oil sector of the USA.

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