Baku, Azerbaijan, Sept.24
By Leman Zeynalova – Trend:
Brent oil prices are expected to stand at $70 per barrel in the fourth quarter of 2018, UK-based Capital Economics consulting company said in its report obtained by Trend.
The analysts from Capital Economics believe that Brent prices will continue to drop in 2019.
As of the first and second quarters of 2019, Brent prices are forecasted at $67 and $65 per barrel, respectively.
Brent prices will drop to $63 and $60 per barrel, in the third and fourth quarters of 2019, respectively.
Moreover, the report said that the high Brent/WTI spread is encouraging exports.
Meanwhile, the price of Brent also increased, reflecting ongoing concerns over future supply and perhaps some relief that the latest round of tariffs in the US-China trade spat were set at a relatively low level, said the company.
“However, we think that supply will prove resilient. Amid all the headlines about risks to supply from Iran and Venezuela, markets have chosen to ignore the steady increases in output from Russia and Iraq, in particular. What’s more, we expect softer demand in the coming months and in 2019. In the US, where gasoline prices are sensitive to global crude price movements, oil consumption growth has already slowed,” said Capital Economics.
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