Baku, Azerbaijan, Feb.22
By Leman Zeynalova – Trend:
Oil prices have fallen back recently and investors have decreased their net-long position in the futures markets, Capital Economics said in its report.
“The prices of almost all the energy commodities that we follow have fallen below their 50-day moving averages , mainly because of surging supply. Meanwhile, the Brent-WTI spread narrowed as disruptions to output in the North Sea were resolved,” said the report obtained by Trend.
Non-commercial net-long positions in Brent and WTI have fallen back over the last few weeks, in line with the sharp fall in prices, according to estimations of Capital Economics.
The Brent futures curve remains in steep backwardation, said the report.
The quarterly forecast of Capital Economics for Brent is as follows: $64 per barrel in Q1 2018, $63 per barrel in Q2, $62 per barrel in Q3 and $60 per barrel in Q4.
Capital Economics expects Brent prices to stand at $55 per barrel in 2019.
As for West Texas Intermediate (WTI) oil, the company expects quarterly prices as follows: $60 per barrel in Q1 2018, $59 per barrel in Q2, $58 per barrel in Q3 and $55 per barrel in Q4.
WTI prices are likely to stand at $52 per barrel in 2019.
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