Oil prices have risen above $60 a barrel for the first time this year amid signs that industry spending cuts might curb supply.
Brent crude collapsed 60% from a high of $115 a barrel last summer to $45.19 in January, the lowest in almost six years, as a result of oversupply.
Despite the rise on Friday, oil is still down by almost 50% compared with the peak in June.
Analysts at Bank of America Merrill Lynch are predicting Brent average prices will range between $40 and $70 a barrel in the next 18 months.
“A continued build in storage will likely further exacerbate near-term price volatility and keep pressing companies to make capital expenditure reduction decisions that will have long-lasting effects on production,” they wrote in a note.
via The Guardian
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza