The global crude oil prices are likely to remain in a range between $40 and $60 per barrel through 2018 and may even stretch through 2019 despite Organization of Petroleum Exporting Countries (OPEC) and its Non-OPEC allies’ decision to extend production cuts till the end of 2018, global credit rating agency Moody’s said on Monday.
“We continue to assume medium-term price bands of $40-$60 per barrel for oil, in spite of the extension of OPEC-led production cuts to the end of 2018. Recent higher oil prices have been supported by expected global economic growth and production restraint by major producing countries, as well as greater geopolitical risk. However, risks to prices, as seen in mid-2017, still persist, including reduced consumption at higher prices and increased supply,” Moody’s said in its global report on oil price outlook.
It added that prices in the upper half of the oil price-band ($40-$60) will encourage increased supply as countries reduce compliance with their production quotas and will support increased US production. Read More…
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