Oil prices dropped after the oil states could not agree on the Doha meeting this weekend. But big bank Citi speculate a recovery, writes CNBC.
The world’s largest oil-producing countries succeeded in meeting this weekend, did not reach an agreement to freeze production at the January levels. Still, Citi believes the reduced supply from countries like Venezuela, Nigeria and Algeria because of reduced investment and political instability.
Bank now believe at a price of 39 and 38 dollars per barrel for Brent and WTI oil during the second quarter, an increase from previous forecasts of $ 31. During the third quarter, Citi expects a price of 46 and 45 dollars per barrel, which was also an increase, while the fourth quarter is expected to see prices 52 and $ 50 per barrel for Brent and WTI oil.
Även without a freeze on production, the large oil surplus to fall, believes the bank.
– After almost two years of uninterrupted increase in stocks, the market appears to approach a period of sustainable drainage, with prices back above 60 dollars a barrel in 2017, the bank said according CNBC.
Under writing noted front-month semester for Brent crude oil at nearly $ 40.9 a barrel, while WTI oil is in the $ 39.5 a barrel.
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