The cost of oil at $50 per barrel, set on Thursday is a good indicator for the oil market inspite of the cost is low for raw materials producers and they are no longer incur losses, Bloomberg informs.
The price $50 is "psychological barrier," said the head of the New York Office of the oil market research Societe Generale Michael Wittner. The article notes that the increase in the cost of a barrel largely contributed to the suspension of supplies of raw materials from Canada and Nigeria, as well as the decline in US production.
However, according to Wittner, even the return of Canadian and Nigerian oil can not exert influence on the market, because oil producers need a higher price to stop the losses increase.
The report of the Analytical Center of Wood Mackenzie Ltd states that the minimum threshold value of oil for the 50 largest world producers of $53 per barrel. At the same American producers, it may need a higher price, and to significantly increase production, said analyst William Foyls.
In his view, after the collapse of prices in August 2015 the company will act more cautiously. Then many of them to invest more in production, as oil prices held above $60 a barrel in August began to trade below $40.
"Many companies, a kind, have been deceived in the past year, now they are more cautious." - Said Foyls.
The price $50 is "psychological barrier," said the head of the New York Office of the oil market research Societe Generale Michael Wittner. The article notes that the increase in the cost of a barrel largely contributed to the suspension of supplies of raw materials from Canada and Nigeria, as well as the decline in US production.
However, according to Wittner, even the return of Canadian and Nigerian oil can not exert influence on the market, because oil producers need a higher price to stop the losses increase.
The report of the Analytical Center of Wood Mackenzie Ltd states that the minimum threshold value of oil for the 50 largest world producers of $53 per barrel. At the same American producers, it may need a higher price, and to significantly increase production, said analyst William Foyls.
In his view, after the collapse of prices in August 2015 the company will act more cautiously. Then many of them to invest more in production, as oil prices held above $60 a barrel in August began to trade below $40.
"Many companies, a kind, have been deceived in the past year, now they are more cautious." - Said Foyls.
