Alfa Bank analyst forecasts high oil prices

Senior oil and gas analyst of Alfa Bank Konstantin Reznikov commented onthe current situation on the oil market in an interview with RBC andreported that oil prices were growing. He explained that the conflictaround Iraq was aggravating and a military development of this situationwas being discussed, which pushed the oil market up. Additionally, new dataon a reduction in oil reserves testifies that demand for oil is stillhigher than expected. "I believe the Iraqi conflict will remain the mainproblem on the market, and prices for brent oil are not likely to go below$26 per barrel under these conditions," the expert was quoted as saying.Commenting on OPEC policies, he noted that this organization had notclarified its unified position on oil production quotas so far. Probably,OPEC is trying to understand what independent oil producers will do in thissituation, the Alfa Bank analyst concluded..

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