Oil prices won’t exceed $60 in short-term - analysts

EghtesadOnline: Oil prices will not exceed $60 a barrel in the short-term perspective, according to the forecasts of the British economic research and consulting company Capital Economics.

News ID: ۷۳۶۲۵۸

28 August 2016

The forecasts, published in analysts’ weekly commodity report, obtained by Trend, show that Brent price will stay at $45 a barrel in the third and fourth quarters of this year, then reaching $50 a barrel in the first quarter and $55 a barrel in the second quarter of the next, according to ILNA.

In the third quarter of 2016, analysts expect Brent price at $58 a barrel.

Oil fell on Friday and was set for its largest weekly decline in a month after the Saudi energy minister watered down expectations that the world's largest producers might agree next month to limit their output, Reuters reported.

Brent crude oil futures LCOc1 were down 32 cents at $49.35 per barrel by 1144 GMT, while US WTI crude CLc1 was down 22 cents at $47.11 a barrel.

Saudi Arabian Energy Minister Khalid Al-Falih told Reuters that the Kingdom does not believe any significant intervention in the market is necessary “other than to allow the forces of supply and demand to do the work for us."

He said the "market is moving in the right direction" already.

The informal OPEC meeting is expected in late September in Algeria. It is expected that the talks on oil production freeze will be held between OPEC and non-OPEC countries.