Friday, February 13, 2015

Oil Rises Above $60 After Supply Cut Hints

Oil prices have risen above $60 a barrel for the first time this year amid signs that industry spending cuts might curb supply.

Brent crude collapsed 60% from a high of $115 a barrel last summer to $45.19 in January, the lowest in almost six years, as a result of oversupply.

Despite the rise on Friday, oil is still down by almost 50% compared with the peak in June.

Analysts at Bank of America Merrill Lynch are predicting Brent average prices will range between $40 and $70 a barrel in the next 18 months.

“A continued build in storage will likely further exacerbate near-term price volatility and keep pressing companies to make capital expenditure reduction decisions that will have long-lasting effects on production,” they wrote in a note.

via The Guardian

0 коментарі:

Post a Comment