ABN Amro sees oil prices lower for longer
[LONDON] ABN Amro on Friday cut its oil prices forecasts, citing oversupply and said oil prices will remain"lower for longer."
The bank cut its 2016 Brent and WTI price forecast to US$50 per barrel from its prior view of US$65 and US$60, respectively. "It is extremely difficult to pinpoint the exact timing of the expected oil price recovery," said Hans van Cleef, senior energy economist at ABN Amro.
"In the near term, the news flow is mainly dominated by the development of US crude inventories, geopolitical tensions and the Opec policy. This leads to ongoing high volatility of the oil price."
ABN Amro said it still expects a moderate appreciation crude prices in the course of 2016 based on several factors like economic expansion in the US, Europe and Asia, and negative impact on global oil production due to investment cuts in the energy sector.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
India's Vedanta misses Q4 profit estimates on lower prices
BHP targets Anglo American in bid valuing miner at US$39 billion
China's Sinopec charts global expansion with refinery in rival India's backyard
Gold trades in tight range as market focuses on US economic data
Oil settles lower as US business activity cools, concerns over Middle East ease
Orsted says Taiwan wind project to power TSMC on track for 2025 finish