Alexander Firanchuk and Gasan Ramazanov on prospects of oil production in the USA

Alexander Firanchuk believes that US companies are unlikely to increase production in response to lower prices. «Oil production in the US on the average becomes profitable at a significant part of fields at a price of about $70 per barrel. The risk is elsewhere: if Trump initiates a real global trade war, it will inevitably result in a cooling of global economy and, therefore, a reduction in demand for oil," he believes.

Gasan Ramazanov added that Trump’s fulfillment of the plan to increase oil production in the US may affect global oil prices, which will decline, as production and supply of US oil to the world market intensifies. The expert also noted that very low oil prices will also bring harm to the US oil industry, as the US is one of the largest exporters of oil to the world market.

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