The head of Saudi Aramco has predicted the rise in oil prices by the end of the year

Oil prices by year’s end will rise, but the price of a barrel reaches the level of 2013-2014. This was stated by the President and CEO of the world’s largest oil company, Saudi Aramco, reports Bloomberg.

Prices will increase due to the fact that “the gap between supply and demand on the oil market is declining,” said Nasser, speaking in Beijing.

The word Nazir sound against forecasts of Russia and the USA about the upcoming decline in oil prices. In early March, the U.S. Department of energy has lowered its forecast for the oil price. Previously, the Agency believed that its average price in 2016 is $37,5 per barrel, but has now reduced that forecast to $34,28. EIA also $10 lowered its forecast for 2017. If in February it amounted to about $50/bbl., it is now at $40,09/bbl. Expectations for the average price of West Texas Intermediate (WTI) in 2016 have been dropped from $37,59/bbl. up to 34.04 per barrel.

The Russian Central Bank is also braced for lower oil prices. The regulator believes that due to the slowdown of the Chinese economy, the expansion of oil supplies from Iran and increased competition in the oil market has been oversupply. “Therefore, some recovery in oil prices in recent weeks may not be sustainable,” said in the Central Bank. The Bank of Russia laid down in the updated baseline scenario of the forecast average oil price of $30 per barrel in 2016 and gradually increase to $40 per barrel by 2018.

The increase in oil prices observed since mid-February. As at 20:56 Moscow time, a barrel of Brent at $is 41.45.