Baku, Azerbaijan, Oct. 28
By Leman Zeynalova – Trend:
Oil prices exceeding $50 per barrel seem sustainable given how periods of zero supply growth in global crude production – essentially the 2017 profile that would result from an OPEC cap plus flat US output – are normally associated with double-digit price gains, according the report of the US JP Morgan bank.
Now, most markets seem to believe that $50 per barrel can stick, according to the report obtained by Trend Oct.28.
JP Morgan expects average prices of $55 per barrel in 2017 and $60 per barrel by the end of next year.
Oil prices were steady on Oct.28, but on track for a weekly loss of more than 2 percent on uncertainty over whether OPEC would be able to coordinate a production cut big enough to curb a global glut.
Brent crude futures were at $50.48 per barrel at 06:42 GMT, up 1 cent from Oct.27. US West Texas Intermediate (WTI) crude was down 1 cent at $49.71 a barrel. Both benchmarks hit their lowest in about three weeks on Oct.26 and were headed for their biggest weekly drop since September.
In September, OPEC producers agreed during the informal meeting in Algiers to cut down the oil output to 32.5 million barrels per day (bpd) from current production of 33.24 million bpd.
How much each country will produce is to be decided at the next formal meeting of OPEC in November.
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