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Brent price expected to rise

Oil&Gas Materials 22 September 2016 16:57 (UTC +04:00)
The average price for Brent is expected to rise to $60 a barrel in 2017, according to the forecasts of the British economic research and consulting company Capital Economics.
Brent price expected to rise

Baku, Azerbaijan, Sept. 22

By Aygun Badalova – Trend

The average price for Brent is expected to rise to $60 a barrel in 2017, according to the forecasts of the British economic research and consulting company Capital Economics.

In the third and fourth quarters of 2016, British analysts forecast Brent average price at $45 a barrel compared to $40 a barrel in the first and $50 a barrel in the second quarter of the year.

“The Brent-WTI spread has risen slightly since the middle of last month, as high stocks in the US continue to weigh on the price of WTI,” analysts said in a report, obtained by Trend.

“In tandem with spot prices, Brent futures prices have fallen recently. Prices are not expected to rise above $50 per barrel until this time next year,” they said.

Oil rose for a second day on Thursday as a weaker dollar and a surprisingly large drop in US crude inventories emboldened investors ahead of next week's meeting between OPEC members and Russia to discuss supply, Reuters reported.

Brent crude futures LCOc1 rose 44 cents to $47.27 a barrel by 1100 GMT, or a 3.2 percent gain so far this week, while US oil futures CLc1 were up 47 cents at $45.81 a barrel.

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.

The meeting will be held at the fringe of the International Energy Forum in Algiers from 26-28 September.

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