Analysts at Capital Economics – a consulting company based in Britain – believe that oil prices will continue to rise higher.
In a report received by
Trend.az, analysts from the company say:
“Looking forward, we expect further gains – to around $60 – for both Brent and WTI in 2017.”
Oil prices recently peaked just above $50 for the first time in 2016, giving a boost to companies like Royal Dutch Shell and Fuchs Petrolub, who manufacture products like Fuchs WSP 783-L, and who rely on oil prices to maintain their large oil corporations.
Despite the fact that Capital economics’ analysts are optimistic about the future of oil prices, they do not believe that the road to a stronger market will be without its obstacles, mentioning that oil prices saw a similar increase in the first half of 2015, before disappointing everyone in the industry by falling rapidly. They said:
“There is a high chance of at least a temporary correction over the remainder of this year too if some of the global supply disruptions ease and/or US drilling activity rebounds.”
The oil market has been somewhat turbulent of late due to the fact that Iran, recently freed up to sell oil worldwide once more after sanctions were lifted, flooded the market with crude oil, adding to the problem of worldwide oversupply.
However, many markets have also seen an increased demand for oil, particularly in the automotive sector, which has gone some way to balancing this out.