It is expected that the price of oil will reach $ 150 per barrel.
Oil prices in the short term could rise to 150 dollars per barrel. Such forecast contains in the report of the research company Sanford C. Bernstein & Co.
“Investors who have called on the leadership of companies to limit capital expenditures and to pay them back, sorry about the lack of investment in the industry. Any shortage of supply will lead to SuperStack prices, potentially much more powerful than the increase to $ 150 per barrel in 2008”, — the document says.
It is noted that the minority shareholders of the oil companies around the world at General meetings insist on the reduction of investment programs and increased dividends. Also, companies are forced to repurchase shares from shareholders to increase the value of the securities.
As a result, the production level falls, reducing the exploration that leads to shortages and, consequently, high prices. Most oil demand is observed in Asia.
In the example of the situation is ExxonMobil, which in early 2018, contrary to the requirements of shareholders, increased spending on development and investments, and also reduced the buyback program. However, stock holders started to sell them, and ultimately capitalization (the total market value of the shares) fell by more than 15 percent.
In December 2016, the 13 OPEC member countries and 11 countries outside the cartel, has signed an agreement to reduce oil production to 1.8 million barrels a day by October 2016. The share of Russia it was necessary about 200 thousand barrels per day. This has led to growth of quotations Brent from 50 to 78 dollars per barrel.