US Bank: freezing production agreement will lead to $ 47 oil

February 19, 2016 20:28

He predicted the bank "of America Merrill Lynch," The price of oil up to a threshold of $ 47 a barrel in the event of the implementation of the freezing of production and raise fuel prices agreement.

The bank said in a report today, said that "freezing the Organization of Petroleum Exporting Countries [OPEC] production level in addition to the reasonable increase in the retail prices of fuel for gasoline is expected to help the high price of oil back to $ 47 a barrel by next June.

The report added, that "it is expected to help freeze the level of OPEC production market to find the bottom of the drop, noting that" OPEC agreement on freezing production is an important step to stabilize oil prices or even global markets. "

He added, "In the face of rising domestic demand in Saudi Arabia by 450 thousand barrels per day from winter to summer, exports may drop by a deadline of next July."