As predicted by most experts, the global market of crude oil keeps on seeing another decline. With that being said, everyone is not pondering upon when the market is going to hit the bottom.
Citigroup analysts say that this is likely to happen within the next 3 months. The thing is that Iran is about to make the first full-grown shipment of crude oil to the international market, which is going to trigger more sellouts in the market, thereby brining the prices down to new major lows. Only when the shipment is complete, we may figure out what is going to happen next. Until then, the long-term prospects will remain vague.
It is interesting to note that Citigroup experts prefer not to make any specific forecasts for the next 3 months. In particular, they don’t name any specific price level crude oil is expected to reach. There is nothing to be surprised with if to consider the fact that this is going to be the time of major structural challenges for the entire global industry. At the same time, the world’s biggest oil exporters may eventually bring major changes to their policies, thereby influencing the situation. That is why it would be more logical to predict oil prices for the second part of the year instead of making shorter-term predictions.
Judging by some other forecasts, Brent oil may well see its price improving all the way up to $41 per barrel in Q3 2016. Without any doubt, this is going to be a marginal price level for oil exporters. Still, it that’s the case, it will do a lot of good to them. Others say, the price may jump up to $51 per barrel in the second part of the year given that oil market players compromise.
Masterforex-V Academy reminds you that Norway’s biggest bank named DNB has recently made an even more optimistic forecast. They don’t deny a move up to $65/ per barrel later this year. If his forecast manifests itself, the experts say this may result in the market getting its supply-demand balance restored. Meanwhile, price is going up and down, dropping below $30/b and restoring above it. As for Norway, it is a major oil producer and exporter with its economy dependent on oil experts. With that said, Norway want’ to be oil prices as high as possible. Maybe that’s why DNB experts are so optimistic on crude oil…
