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Brent crude prices not to exceed $52/bbl till end of 2Q17

Oil&Gas Materials 17 May 2017 10:47 (UTC +04:00)

Baku, Azerbaijan, May 17

By Leman Zeynalova – Trend:

Brent crude oil prices will not exceed $52 per barrel till the end of the second quarter of 2017, says an analysis done by the UK-based consulting company Capital Economics.

Brent price is forecast to stand at $56 per barrel and $60 per barrel as of the third and fourth quarters of 2017, respectively, according to the analysis obtained by Trend.

Capital Economics expects Brent price at $65 per barrel as of late 2018.

“The prices of most of the energy commodities we follow have fallen over the last month. The main exception was the price of US natural gas which is now over 5 percent higher than its 50-day moving average,” said the analysts.

The recent swings in oil prices mean that the implied volatility in Brent has jumped, but it remains at a relatively low level, said the Capital Economics.

Net non-commercial long positions in Brent and West Texas Intermediate (WTI) oil have fallen over the last month as investors grew more concerned about excess supply in the market, according to the analysis.

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Follow the author on Twitter: @Lyaman_Zeyn

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