Oil Approaching $ 60 A Barrel

Price of oil rises significantly on Tuesday, and the “black gold” market took the color pink, bringing the Brent Crude to $ 58.30 a barrel, which is close to $ 60, a price that the “OPEC” members are seeking to reach in the forefront of Algeria, after the meetings of the Vienna 1 and 2, which decisions were cooked in Algiers by the end of last September, at a time when experts warn of a wake-up of 5,000 wells of shale that are sleep in America, in case the barrel will reach $ 60, as these wells were drilled for some time, as they threaten to plunge the market with an additional 1.5 million barrels.

Expert in the energy, Bouziane Mahmah, shows hope by saying that the increase of the Brent crude oil, which reaches for the first time in more than two years, and after 72 hours of the application of the resolutions of Vienna 1 and 2, $ 60, a price at which was aspired by OPEC countries, expecting the stability of prices in this direction, asserting that it will not be less than $ 55 for more than 6 months, and the number may continue until the year 2018, if the members of the organization will show commitment to countries for the application of roofing decisions.

“New challenge that OPEC countries will face is to find the mechanisms for adjusting the market and monitoring the extent of compliance with the new quota system, which combines analyzes of banks and financial authorities of the oil markets and all international banks, and the energy sector will see some sort of stability for two consecutive years, and in case of activation and compliance with the decisions of the absorption of 1.5 million barrels of oil from the market, which saw a big glut by the beginning of the year 2014, and if the decisions can absorb 1.8 million barrels in the knowledge that the oil excess in the market, which led to the war of cracking prices, led earlier to two million barrels, and this in case of finding effective mechanisms of control that will include both producers and speculators, which will emerge from the five-member committee that is headed by Kuwait.

“We warned of the talks about shale oil rebound after prices will rise to more than $ 60, which will stimulate the stocks, as five thousand wells of shale oil that were previously drilled will wake up, to provide the market with one million and a half million barrels, which could absorb all the positive decisions of ” OPEC “, especially in light of talk about the new US policy, which is represented by Donald Trump and an oil person like the foreign minister, which would making US foreign policy smelt the smell of oil”.

“There may be a redrawing of a new global oil map in 2017, that is influenced by the features of the geopolitical map that is characterized by the Russian-Turkish agreements and the return of Russia to the fore strongly”.