Oil prices to exceed $60 – expert

By late 2016, oil prices will exceed $60 per barrel due to the reduction of raw material production volumes in the US and Nigeria, and the growth of China’s economy, Co-Chairman of Ukrainian Energy Strategies Fund Dmitry Marunich told Trend May 24.

Currently oil prices are in the range of $48 per barrel. Prices on global oil markets on May 24 morning continued to decline in anticipation of statistical data regarding the US fuel stocks. The average spot price for Brent was $36.88 per barrel since early 2016, and the minimum price was $26.01 per barrel.

Marunich said that growth in prices observed since May is hardly stable, but most likely, the lowest oil prices were set in January and February of 2016.

The average price for Brent in January-February amounted to $31.44 per barrel. The lowest price for Brent for the period amounted to $26.01 per barrel, the highest price – $36.28 per barrel.

“The prices observed in January-February 2016 won’t reoccur in the near future, as production levels in the US and Nigeria decreased,” Marunich said. “The state of the Chinese economy is also rather optimistic.”

In general, many experts don’t expect oil prices to significantly grow in 2016. Thus, analysts of the US JP Morgan bank predict the average price for Brent to amount to $45.3 per barrel, the average price for WTI – at $44.66 per barrel in 2016.

Analysts of the Capital Economics UK consulting company forecast the price of Brent and West Texas Intermediate (WTI) crude oil at the level of $45 per barrel by late 2016.

Source: Trend