OPEC extended cut production agreement oil analyst even more bullish oil prices

Reuters survey released on Wednesday showed that oil analysts raised their estimates of crude oil prices next year, after the major oil-producing nations agreed to extend the cut production plan.

Data Picture: El Sharara Oilfield, Libya, December, 2014. REUTERS / Ismail Zitouny
Analysts said tensions in Saudi Arabia's political situation, production disruptions in Libya and Nigeria, and Venezuela's economic downturn, these factors led to a decline in crude oil production, but also to provide support for oil prices.

It is currently estimated that the average Brent crude oil price for the 2018 index will be 58.84 U.S. dollars, more than 3 U.S. dollars higher than the 55.71 U.S. dollars estimated from the last survey in late October.

OPEC and non-OPEC oil-producing countries headed by Russia last week decided to extend the cut-off agreement by the end of 2018 to end the supply surplus.

"The market believes the OPEC extension of production cuts will send a positive signal in accelerating the rebalancing of oil markets ... OPEC oil producing countries may strictly abide by the production cut because the OPEC economies still rely heavily on oil revenues to fill the budget deficit and require oil prices Rise, "said Rahul Prithiani, director of CRISIL Research.