Commentary by Vladimir Feigin, the IEF Principal Director on oil prices

Vladimir Feigin, Principal Director of the Institute for Energy and Finance, believes that with high forecasts for oil prices, financial analysts are most likely trying to shake the commodity market and play on increasing quotations. «The sharp rise in prices before the crisis was explained by the fact that demand was growing rapidly, stocks were decreasing, and there was a general feeling that oil was needed by everyone and might not be enough. Plus, as it turned out, speculators played an active role, inflating the price up to $ 147 per barrel at the peak, — he explained to «NI». — But now the demand is growing very slowly, it is not visible that stocks are falling. The reserves of capacities that were created before the crisis, for example, in Saudi Arabia, and which can be launched, are not falling either. So there are no direct prerequisites for growth. But the markets play in their own way, they tend to rock the boat and take advantage of this situation. If everyone believes that there will be growth and traders will start laying on it, then prices will really go up.»