Baku, Azerbaijan, Nov. 3
By Aygun Badalova - Trend:
Global oil prices will recover in 2015 with Brent to average $115 per barrel and WTI - $108 per barrel, U.S. bank JP Morgan's analysts say.
In the view of JP Morgan's analysts, future price developments will hinge in large part on how OPEC collectively decides to manage supply, in the face of strong growth from non-OPEC sources.
"Nevertheless, the contribution from weaker-than-expected demand, particularly in 2Q14, to the decline in prices since mid-June should not be overlooked," analysts said in a report obtained by Trend.
In the fourth quarter of 2015 Brent price is forecast to hit $125 per barrel, while the price for WTI will amount to $118 per barrel, according to the analysts' expectations.
In the first quarter of 2016 analysts predict prices to decrease to $115 per barrel for Brent and $108 per barrel for WTI.
Last week West Texas Intermediate (WTI) for December delivery dropped by $0.83 to $81.52 a barrel in electronic trading on the New York Mercantile Exchange.
December Brent, which is the benchmark price for products in Europe and Asia, downed by $0.36 to $86.81 a barrel on the London-based ICE Futures Europe exchange.
The issue of whether to keep or cut OPEC's oil production quotas in order to stabilize oil prices will be discussed on November 27. Cartel's current production quota amounts to 30 million barrels per day (mbd). OPEC holds 60 percent of the world's oil reserves and 30 percent of supplies.
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