Expert forecasts Brent oil prices

Oil quotations came under pressure last week, with Brent crude oil losing 2.8% in price and WTI falling by 4%. In addition, it is predicted that the average price of Brent oil this year will be about $70-75 per barrel. Vladimir Bragin, director of financial markets and macroeconomics analysis at Alfa Capital Management Company, told Izvestia on January 31.

"Market sentiment deteriorated after US President Donald Trump's statement in Davos about his intention to push for lower oil prices, including through negotiations with Saudi Arabia as the de facto leader of OPEC+," Bragin explained.

According to him, the new U.S. president intends to impose 25% duties on imports of goods from Mexico and Canada starting February 1. Last weekend, Trump also instructed his administration to impose 25% duties and take other measures against Colombia for the refusal of the country's authorities to accept two planes with illegal migrants from the United States. However, the White House later announced that the duties would not go into effect for now because the Colombian government had agreed to all conditions, including accepting flights with deportable migrants.

According to the specialist, Colombia is the fourth largest supplier of crude oil to the US, exporting more than 200,000 barrels per day. The main export grades are heavier grades of crude, so US Gulf Coast refineries will either have to find alternatives or bear higher costs if duties do come into play.

"Freight rates appear to be declining from recent highs following the announcement of new sanctions, suggesting that Russian oil is still being transported using Russia's shadow tanker fleet despite the fact that most of the vessels are under sanctions," Bragin concluded.

Earlier, on January 22, Atomic Capital CEO Alexander Zaitsev told Izvestia about the factors of oil price increase. According to him, the peak of Brent growth on the wave of sanctions, which came on January 15, has been passed, and having reached $82.25 per barrel, the price began to correct. So far it is moving around the resistance level of $80 per barrel, where it will remain without new inputs. If their release is delayed, a pullback to the level of $75 per barrel is possible in February.