OPEC agreement not to bring changes to oil market

"I think the agreement will not work, because the OPEC members will not stick to the agreements. Furthermore higher prices would have the consequence that producers of unconventional oil could enter the market again and the conventional producers would lose market share,” Abdolvand told Trend by email.

Last week OPEC agreed to cut its oil output for the first time since 2008. The group plans to reduce output to 32.5 million barrels per day from current production of 33.24 million bpd. How much each country will produce is to be decided at the next formal meeting of OPEC in November, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia.

Abdolvand also expects that other large oil producers will not join this agreement in order to avoid to lose market shares.

As big producers won't stick to the agreement, there will be no significant changes in the world oil prices and world oil market, he said.

On Monday morning the cost of the December futures for Brent crude oil fell by 0.46 percent to $49.96 per barrel, November futures for WTI reduced by 0.68 perent to $47.91 per barrel.