Oil prices to average $60-65/b in 2018: QNB - The Peninsula Qatar

Oil prices to average $60-65/b in 2018: QNB - The Peninsula Qatar:

"Oil prices are expected to be range bound around the $60/b mark. On the one hand, Opec would have a strong incentive to extend the current production cuts beyond 2018 if prices threaten to break significantly lower due to excess supply. This would help to rebalance the market and support prices. On the other hand, if prices rise significantly above the US shale “break-even” price, these producers are likely to respond by increasing US shale production more aggressively thus capping the topside in oil prices. In its weekly ‘economic commentary’, QNB Group noted the Brent oil price has proven to be volatile over the past 10 days. After rising to above $70/b in late January, which is 55 percent higher than the recent low of $45/b set in June last year, the Brent oil price fell back to around $63/b last week."



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