The expert explained why the decline in oil prices will not be too long

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In the world recorded a decline in oil prices. However, this situation will not last too long, said the Deputy Director of the national energy Institute Alexander Frolov in ether IA “NSN”.

According to experts, the situation in oil prices is due to several factors:

the market is oversupply, as the U.S. recently increased its production volumes of shale oil.
“Shale oil is a light oil. So in August of last year, we saw higher prices for heavy crude oils, high sulfur, primarily for oil Urals, the main export grade of Russia”, – said Frolov.

the General decline in prices may lead to bankruptcy of American oil companies. In this case, it will stabilize the market.Stabilization of oil prices will also help deal OPEC+.
Earlier it was reported that, according to experts, the coronavirus can lead to a drop in world demand for oil to 260 thousand barrels per day in 2023. It is noted that since the outbreak of the new virus in China, the price of oil fell to 60.7 per dollar.

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