Baku, Azerbaijan, April 17
By Aygun Badalova - Trend:
Oil prices rise amid the doubts on the ability of Iran to export oil until 2016, British economic research and consulting company Capital Economics said in a report obtained by Trend.
Analysts mentioned that oil prices have rebounded since the middle of March after having fallen in the first two weeks of last month. They have been especially strong this week.
"Prices were volatile in March as fighting in Yemen escalated causing prices to rise and details of a deal between Iran and the West were released, which then caused prices to drop sharply. However, they quickly rose again as it became apparent that Iran would be unable to export oil until 2016 at the earliest," analysts said.
Tehran and P5+1 (the US, UK, France, Russia, China, and Germany) reached a political framework for the ongoing nuclear talks on April 2.
Oil prices initially fell by around 5 percent on the announcement but have since recovered all of their losses.
Crude oil prices jumped to fresh 2015 peaks on April 16. Brent crude for June delivery rose 66 cents to settle at $63.98 a barrel, rallying from a $62.00 low and reaching a 2015 peak for front-month Brent of $64.95.
U.S. May crude rose 32 cents to settle at $56.71, hitting a 2015 high of $57.42 after recovering from a $55.07 intraday low.
Brent's premium to U.S. crude was back above $5 a barrel, now comparing June contracts, after the spread narrowed to $3.34 intraday on Wednesday, the day Brent's May crude contract expired, Reuters reported.
Capital Economics' analysts forecast Brent prices at $60 per barrel in 2015 and $65 per barrel in 2016. WTI price is forecasted at $55 per barrel in 2015 and $65 per barrel in 2016.
OPEC basket crude price is forecasted by British analysts at $57 per barrel in 2015 and $62 per barrel in 2016.
Aygun Badalova is Trend Agency's staff journalist, follow her on Twitter:@AygunBadalova