Oil prices likely to fetch US$70 a barrel this year - News Summed Up

Oil prices likely to fetch US$70 a barrel this year


KUALA LUMPUR: With oil prices already hovering between US$55 and US$60 per barrel at present, OCBC Bank expects prices to head marginally higher to at most US$70 per barrel in 2018 against a backdrop of a strong global demand and tame supply story. “The upside risks for crude oil prices in 2018 is limited, although the rally momentum has picked up into the second half of 2017.The higher prices of late have also triggered more US oil supplies. “Even so, the oil rally to-date remains extremely fragile and market-players will not hesitate to bring oil prices lower again,” said Gan, adding that production cuts could be withdrawn which may result in a supply glut. OPEC’s plan to limit supplies in an effort to buoy prices has come to fruition, especially with the rally in prices and narrowing supply glut. “To that end, we do not see much head room for oil prices to gain into 2018,” said Gan.


Source: New Strait Times January 03, 2018 08:03 UTC


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