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Oil prices are expected to grow following OPEC’s decision to go on with output cuts

Oil prices are predicted higher by experts for the coming year following the decision by OPEC and other oil exporters to continue production cuts, as poll by Reuters demonstrated.

Among other reasons for crude prices growth experts also cited political issues in Saudi Arabia, production breaks in countries like Libya or Nigeria, as well as economic slide in Venezuela.

Global standard for oil prices - Brent futures are anticipated to be $58.84 in the next year, which is $3 higher than the last poll results of $55.71.

OPEC and some other oil producing countries, with Russia at the lead, recently decided to continue with their agreement to reduce output by 1.8 mln barrels daily to the end of next year with the purpose of stopping oversupply. However, the decision could be discontinued earlier in case the market overheats and causes too big growth of prices.

The OPEC agreement prolonging was anticipated and sends a good message to the markets for more robust rebalancing, said CRISIL Research’s Rahul Prithiani.

OPEC economies are likely to stick to the decision as their countries’ budgets are much dependent on income from oil exports and so they’re seeking ways to lift oil prices, he also said.

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