OPEC is back, but be careful!

on Thursday (December 1st) oil prices rise 4%, Brent crude oil hitting about a maximum of 16 months, the continuation of the organization of Petroleum Exporting Countries (OPEC) and Russia reached an agreement with the rapid decline in global production, excess supply after the rally.

Nevertheless, on the market but there are still some doubts about the production problems. French Foreign Trade Bank in London Abhishek Deshpande to the people poured cold water. “OPEC is coming back,” said Deshpande Abhishek. “But, beware.”

While this may be disappointing, but Deshpande is right, there are many reasons for people not be reduced to 1 million 200 thousand barrels of the agreement become dizzy with success, the biggest reason is that OPEC members themselves do not comply with the agreement.

Morgan Stanley expects the US shale oil drilling will increase, from Asia to Beihai investment will increase, rising oil prices limited space, by the end of 2017 the market performance or disappointing.

Goldman Sachs estimates up to $60, or the second half of next year fell to $50 a barrel. Holdings of U.S. shale oil assets in the Mitsui Co of Japan predicted oil prices will drop to a range of $40 over the past six months.

Oil prices may rise to $60, but the shale oil industry will increase, prices may fall back, Japan’s Mitsui Financial Officer Keigo Matsubara said in an interview Thursday. “Oil prices will not continue to maintain at more than $50.”