Baku, Azerbaijan, Oct.1
By Leman Zeynalova – Trend:
The price of Brent crude rose above $80 on Oct.1, apparently in response to the outcome of the Joint OPEC and Non-OPEC Ministerial Monitoring Committee (JMMC) meeting last weekend, UK-based Capital Economics consulting company said in its report obtained by Trend.
“The JMMC agreed that the oil market was in balance and adequately supplied for now. We are a little surprised that prices surged on this news as OPEC and its allies have never made an output decision at these meetings,” said the report.
What’s more, producers would not want to be seen to be acting on President Trump’s bidding, according to Capital Economics.
Ahead of the meeting, Trump tweeted that the “OPEC monopoly” should raise output in order to lower prices.
“The market chose to ignore some more bearish news out of the US, with the latest data showing a rise in stocks of crude and gasoline. That said, US-based WTI underperformed Brent this week, with a further widening of the spread suggesting that US crude exports will remain strong.”
Brent oil prices are expected to stand at $70 per barrel in the fourth quarter of 2018. The analysts from Capital Economics believe that Brent prices will continue to drop in 2019.
As of the first and second quarters of 2019, Brent prices are forecasted at $67 and $65 per barrel, respectively.
Brent prices will drop to $63 and $60 per barrel, in the third and fourth quarters of 2019, respectively.
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