Mid-term prospects for oil prices are bright, analysts say

Oil&Gas Materials 16 September 2016 18:18 (UTC +04:00)

Baku, Azerbaijan, Sept.16

By Aygun Badalova - Trend:

Analysts of the British economic research and consulting company Capital Economics believe that medium-term prospects for oil prices are bright.

In the report, the analysts said that speculation about a potential deal to freeze oil output at the unofficial OPEC meeting at the end of September has been largely responsible for the increase in oil prices over the past month. However, hopes that OPEC can agree an output freeze are likely to be disappointed again, analysts believe.

Analysts expect oil prices to recover to $60 per barrel in 2017.

Oil prices fell Friday as markets focused on the glut in oil stocks after the shutdown of the Colonial Pipeline, which transports 1.2 million barrels of gasoline a day in the US, the Wall Street Journal reported.

The November contract for Brent was down 1.27 percent at $46.00 a barrel while its US counterpart WTI fell 1.18 percent to $43.39 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.