At this point, oil prices are trying to find the balance while going up and down in a pretty wide range. Even though the price is now recovering, some of the international expert community, including S&P experts, don’t believe that oil prices are going to start a major bull run in the near future.
The mentioned S&P experts have downgraded their Brent forecast. This year they expect the average price to be around $40 per barrel. Next year, the price is expected to advance up to $45-$50 per barrel. However, this is not going to save the day for major oil exporters heavily dependent on their crude oil exports, they say.
The experts do not see objective reasons to expect a major rally all the way up to $100 per barrel and higher in the coming years. They also expect the oil exporters to put up with the situation and start balancing their budgets based on the new market reality where they cannot fully rely on oil exports anymore and have to look for alternative sources of financing.
It is interesting to note that the latest predictions made by the rating agency have been correct. That is why the existing forecasts are definitely worth paying attention to. The thing is that after a slight recovery, the price seems to start moving down again.
