The firm joined other big banks, including JP Morgan, in predicting a bullish outlook for oil. The output cut have reduced the supply glut in the oil market, but an overhang of stored products has yet to be fully eradicated. It was reported that the cartel was looking at US$60 a barrel as the floor for oil price next year. Last week, the International Monetary Fund (IMF) said Saudi Arabia needs oil price at US$70 in 2018 to achieve zero deficit in its budget. While these speculative bets are a big risk for the oil market, investors are focusing on fundamental factors that may drive prices higher first.

Source: The Star November 08, 2017 23:48 UTC