Brent seen falling to US$50 as Opec sticks to output decision

London

CRUDE oil prices are poised to fall below half where they were six months ago, before producers begin dealing with a global glut. Brent, the global benchmark, will slide to as low as US$50 a barrel in 2015, according to the median in a Bloomberg survey of 17 analysts, down from the US$115.71 a barrel high for the year on June 19. The grade has already collapsed 47 per cent since then and needs to fall further before producers clear the current glut, said five out of six respondents who gave a reason.

Brent futures sank in the weeks after the Organization of the Petroleum Exporting Countries (Opec) decided to maintain output even as the highest US production in three decades swells a global surplus. Opec will stand by its decision even if prices fall to US$40, UAE Energy Minister Suhail Al-Mazrouei said.