The experts working for Fitch, an international rating agency, has published a new forecast for Brent oil prices for the next 2 years, Market Leader reports. They assume that the cost of each barrel of Brent crude oil is going to be $65 in late 2015.
At the same time, the experts estimated the near-term prospects of the domestic oil production in the Russian Federation. The key reason why they assume the prices to go up is the fact that low oil prices are pressing oil-exporting economies as well as their sovereign ratings published by international rating agencies.
At the same time, Masterforex-V Academy reminds you that slightly over 12 months ago, Brent oil cost $115 per barrel. At this point, Brent oil costs below $60/b. This made rating agencies downgrade the sovereign ratings of 4 major oil exporters.
Despite the fact that Fitch experts anticipate an oil price hike in the coming months, if this scenario fails to manifest itself, it is going to end up with a further rating cuts implemented by Fitch and other rating agencies out there. Apparently, this is not what the world’s biggest oil exporting nations would like to see.
Still, the worst-case scenario is unlikely, the experts assume. While the average price of Brent oil is expected to be round 65 dollars per barrel in 2015, it is expected to increase all the way up to 80 dollars per barrel in 2016.
At the same time, Masterforex-V Academy reports that the global market of crude oil is currently influenced by the news coming from Vienna. The thing is that Vienna hosted the talks on the Iranian nuclear program, which ended yesterday with an agreement. The agreement implies canceling the sanctions imposed on Iran, which mean it is going to return to the global market of crude oil and natural gas in the near future. This makes the market unstable, with a bearish bias.
Meanwhile, Fitch expects Russian to cut its oil production in the near future. This is going to be triggered by the sanctions impose on Russia. By the way, they expect other oil-exporting nations to start cutting down on their oil production as well, which is the major reason why oil prices may start recovering in the coming months.
