In 2018, world demand for oil will grow and may reach over 5 percent. This was stated by the UN expert on global energy issues Togrul Bagirov in an interview with CBC within the framework of the "Economy of the Day" program.
According to him, in general, the current year will be successful in terms of rising oil prices, which is facilitated by the geopolitical and economic situation in the world. The increase in the value of black gold is also affected by the commitment of countries that have joined the OPEC + agreement to rebalance prices.
“I think that the oil prices will range between $65-75. Most likely, in the short term, oil prices will change based on this interval. And in the future I believe that the prices can grow. Currently the prices are $70 per barrel, and this is the fair price, because it is beneficial not only for extracting countries, but also for consuming countries,” Togrul Bagirov said.
In November 2016, the OPEC summit was held in Vienna, where OPEC members reached an agreement on reducing oil output by 1.2 million barrels per day. A meeting of oil producers outside the OPEC was held in December 2016. The meeting ended with signing an agreement to reduce oil production by a total of 558,000 barrels per day starting from January 2017.
OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.