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Trend (5 January 2017)

Elchin Mehdiyev, Maksim Tsurkov

If global economy experiences high growth rates in 2017, oil prices may rise even more, Azerbaijan’s Energy Minister Natig Aliyev told Trend Jan. 5.

The measures taken within the framework of the OPEC meetings led to an increase in oil prices on the global market, and these measures will continue to have their effect in the future, according to the minister.

“But it’s not worth expecting a big effect,” Aliyev said. “We believe that the decisions to be made at the next meeting will contribute to the rise in oil prices to $60.”

Starting from Jan. 1, 2017, OPEC members and other oil producing countries have started to implement the agreements to reduce oil production achieved in Vienna in November last year.

Kuwait, which is a member of the oil cartel, has reduced oil production by 130,000 barrels per day since the beginning of January. Oman intends to reduce production by 45,000 barrels per day in January.

On Jan. 5, Brent crude went up 0.35 percent arriving at $56.66 per barrel.

The growth rate of global GDP in real terms will amount to 2.5-3 percent in 2017, according to the report of the Pacific Investment Management Co. LLC (PIMCO).

Fitch international ratings agency expects a 2.9 percent global economic growth in 2017. Analysts of the International Monetary Fund (IMF) said that the global economic growth will amount to 3.4 percent in 2017.