Post the OPEC output cut deal, crude prices surged as Brent hit a 16-month high.
Mark Keenan, Head of Commodities Research Asia, Societe Generale said OPEC is now back in the driving seat and will regulate oil prices. They already have a time-table for future meetings ready.
He said the deal struck by OPEC is credible and the market has embraced it. With this deal in place, crude will shift from USD 40 to USD 50 per barrel range this year to USD 50 to USD 60 per barrel range for the next year.
In Q1 the price of Brent would average USD 52.50/bbl around the current prices and upto USD 60/bbl in Q4. So the average for the rest of the year would be around USD 56/bbl.
“It is going to be a steady increase in oil prices throughout 2017,” said Keenan.
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