Baku, Azerbaijan, Oct.3
By Leman Zeynalova- Trend:
Looking ahead, the price of oil could ease back as supply remains ample for now, according to the British economic research and consulting company Capital Economics.
The price of Brent surged towards the end of September to its highest level since July 2015 on the back of stronger global demand, hopes that OPEC would extend its output cuts, said the analysis obtained by Trend.
On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.
Capital Economics forecasts that Brent crude oil prices will stand at $57 per barrel as of 4Q2017, while West Texas Intermediate (WTI) oil will be $3 lower than Brent prices in the same period.
Quarterly forecasts for Brent crude oil prices in 2018 are as follows: $57 per barrel in Q1, $56 per barrel in Q2 and $55 per barrel both in Q3 and Q4.
This is while expected prices for WTI in 2018 are $54 per barrel the fourth quarter of 2017, Q1 and Q2 2018 and $53 per barrel in Q3 and Q4 2018.
OPEC basket price will stand at $54 per barrel in Q4 2017 and Q1 2018, $53 per barrel in Q2 2018, $52 per barrel in Q3 and Q4 2018.
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