Azernews.Az

By Fatma Babayeva

The oil market has given positive signal to oil producers with a slight increase in crude price as the most anticipated Doha meeting is nearing.

Many experts suggest that it can lead to recovery in the market, which is experiencing its uneasy period with decently lowering rates.

The Doha meeting scheduled to bring together the world's largest oil producers at the end of this week is expected to make a decision on freezing the crude production rates.

They believe the move to increase the prices on the oil market just in the short-term along with other important steps, in particular rise in demand.

The price of Brent crude June futures rose by 0.24 percent to $42.04 per barrel, WTI May futures by 0.15 per cent to $39.78 per barrel, on April 11.

For instance, U.S. company Bernstein forecasts an increase in demand for oil for the period of 2016-2020, reports RIA Novosti.

The U.S. oil and gas service company Baker Hughes reported on April 8 that the number of drilling rigs in the United States decreased by seven units to 443 units during the first week of April. In annual terms, a decline was 545 units or 55 percent. The number of oil rigs fell by eight units to 354 units in November 2009 which was the minimum.

The commercial oil reserves also fell 4.9 million barrels in volume in the country last week to 529.9 million barrels, although experts expected increase by 3.15 million barrels up to 537.95 million barrels in that period.

The indicator for the last 11 weeks has decreased ten times, which caused a positive change on the market in the run up to the Doha meeting.

Experts of Bernstein company expect that the average annual growth of the world demand for oil in the market will reach 1.4 percent in 2016-2020.

During the last ten years, the average annual growth rate was 1.1 percent.

The International Energy Agency (IEA) said earlier that the annual growth on demand will reach 1.3 percent over the next five years. The balance in the oil market will be restored by the end of 2016, quotes Reuters to the survey done by analysts.

Experts also believe that the demand for oil in the world will reach 101.1 million barrels per day in 2020 from the current 94.6 million barrels per day.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

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