Baku, Azerbaijan, Jan.22
By Leman Zeynalova – Trend:
Brent crude oil prices will range between $63 and $55 per barrel throughout 2018, according to the British economic research and consulting company Capital Economics.
The quarterly forecast for Brent is as follows: $63 per barrel in Q1 2018, $58 per barrel in Q2, $56 per barrel in Q3 and $55 per barrel in Q4, according to Capital Economics.
This is while as of 2019, the consulting company expects Brent prices to stand at $55 per barrel.
Oil prices fell back over the week ending Jan.19, despite the continued decline in US crude stocks since mid-November, as concerns about rising supply emerged, said the company analysts.
“OPEC revised up its estimate of non-OPEC output for 2018 in the latest Monthly Oil Market report. But we think the group are still underestimating the potential rise in non-OPEC supply this year,” said Capital Economics.
There is a risk, though, that if oil prices remain at high levels, compliance with the quotas may slip, the analysts believe.
“Indeed, Saudi Arabia is already producing far below its proposed level which is offsetting above-quota output in other producing countries,” said the report.
===
Follow the author on Twitter: @Lyaman_Zeyn