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Brent oil prices forecasted to stand at $55/bbl in 3Q2017

Oil&Gas Materials 1 July 2017 10:51
Brent crude oil prices are expected to stand at $55 per barrel in Q3 and $60 per barrel in Q4 of 2017.
Brent oil prices forecasted to stand at $55/bbl in 3Q2017

Baku, Azerbaijan July 1

By Leman Zeynalova – Trend:

Brent crude oil prices are expected to stand at $55 per barrel in Q3 and $60 per barrel in Q4 of 2017, says an analysis done by the UK-based consulting company Capital Economics.

The quarterly forecasts for Brent oil prices for 2018 are as follows: $58 per barrel in Q1, $57 per barrel in Q2 and $56 per barrel in Q3, said the analysis obtained by Trend.

“Oil prices rose this week after falling by about 20 percent in the previous month. A sharp drop in US oil production last week boosted sentiment. However, tropical storm Cindy disrupted output in the Gulf of Mexico, so supply may rebound next week,” said the company.

Indeed, the largely unexpected surge in US shale production over the last six months is a key reason why oil prices have slumped recently, the analysts believe.

“However, based on the previous relationship between the number of drilling rigs and oil prices, we expect rig numbers to peak soon,” said the company.

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