The global crude oil prices corrected sharply yesterday and a continued decline in the prices would serve well from India’s point of view given the massive surge in domestic crude oil imports in recent quarters. Brent Crude oil futures cracked lower yesterday, extending a drop from a four year high as recent choppiness gave way to a full blown correction amid global trade concerns and rising OPEC output. Selling pressure in other key commodities like Copper also hurt sentiments for crude. Global equities tumbled after the Trump administration announced it plans to slap tariffs on a further $200 billion of Chinese imports. Brent prices are now down around 6-7% from $80 per barrel.
There is a strong possibility that oil could maintain this range in coming months. The US Energy Information Administration (EIA) expects Brent crude oil prices to average $73 per barrel in the second half of 2018, then fall to $69 per barrel in 2019. In the July 2018 update of its Short-Term Energy Outlook (STEO), the US Energy Information Administration (EIA) forecasts that Brent crude oil prices will average $73 per barrel (b) in the second half of 2018 and $69/b in 2019. Oil prices jumped sharply in last one year. Brent crude is still up around 60% over year. Prices jumped nearly 15% in 2017. Read More