Oil Deal

• 04.13.2015, 20:24
•  World

The prices in oil market still are not stabilized, which has many reasons for that. Today Brent crude rose by $59 a barrel. US drilling have slowed down, which helps to support the oil prices, it is connected with drop of Chinese oil import. Before Brent price was at $58.9 a barrel hitting $53.10 a barrel.

It is connected with the shrink of numbers of rigs drilling oil in US that has fallen by 42 last week to 760. It was the largest decline in March. China - a biggest importer cut its trading numbers. It was 6.3 million barrels a day in March, while it is down by 5.2% compared with February, Reuters reports.

OPEC has criticized some non-OPEC countries for their irresponsible approach towards oil prices. OPEC always took the market burden on its shoulder, but it is time to share the responsibilities with other players as well. This statement OPEC directed especially to Russia. Last year OPEC refused to cut the output, because Russia (a non-OPEC country) declined to offer output curbs.

The war in oil market towards the price will continue until the players share the responsibilities in a just way. Before OPEC had a decision to keep prices down having the same amount of output in order not to loss the market share. The supply and demand balance has breached after China cut its import. So, there is a need to bring the prices in equilibrium point, because supply is more than the demand. But every producer in the market does not want to cut the output. The players should choose either to sell less in high prices or to sell more quantities in low prices. And Iran is next to come after sanctions will be lifted.