Citigroup: Oil prices may rise by $ 10

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Citigroup: Oil prices may rise by $ 10

If agreement on production cuts will not be extended, oil prices may decline
If the duration of the Vienna agreement on reduction of oil production extended, Brent crude oil prices will rise by 10 USD/barrel and reach 65 USD/barrel by end of 2017.
Report informs citing Bloomberg, Citigroup analysts forecasted.
According to experts, extension of agreement by OPEC and non-member countries will lead to the reduction of global oil reserves and therefore by the end of year oil prices will go up.
However, analysts said that the increase in US oil production will be compensated with production cuts by OPEC and non-member countries.
Citigroup also notes, if agreement on production cuts will not be extended sharp decline in oil prices expected.