Oil Remains Under Government Reference Price For 1st Time Since A Year

Price of oil collapsed significantly since last Thursday, and the Brent barrel fluctuated between 48 and 49 dollars, which is the lowest price in more than a year, as the barrel fell below the reference price of the Finance Law 2017, that is set at $ 50.

The black gold stock market was well established following the Algiers meeting and the Vienna agreement to raise production, but this time it fell below the reference price that was set by the Algerian government in the 2017 Finance Law, while it is still talking about the possibility of extending the agreement, and OPEC negotiations in this regard.

On the other hand, the global oil indicators showed yesterday that there is a gradual rise in the price of Brent crude to reach about $ 49.13 per barrel, and prices of West Texas crude oil also increased slightly and the barrel of oil reached to about $ 46.23.

According to data from global agencies, the markets are witnessing a state of instability in world oil prices, during the current period, but there are expectations that the price of Brent crude will reach by the end of 2017 over $ 55 a barrel, especially in light of the commitment of oil exporters to the ceiling of the product as it was discussed on in the end of 2016, after Algiers meeting last September.

Despite the boom in the global oil market before 2014, prices have fallen sharply, with the price of a barrel of oil often reaching about $ 42 a barrel, and soon the stability was in the market and the price of Brent crude reached between $ 49 and $ 53 Per barrel.