Ahead of OPEC Meeting Analysts Divided on Future Oil Price

For the first time since October, last week Brent and WTI crude futures reached $50 a barrel. But in spite of the shift upwards, analysts still disagree over where the price of “black gold” is heading.

Oil prices have rallied over the last two months due to unplanned production outages in Canada and Nigeria that have helped bring global supply and demand into better balance. Crude prices have declined since Thursday’s peak but remained above $49 per barrel on Tuesday morning.

Christian Gattiker-Ericsson, the chief strategist and global head of research at Julius Baer bank, said the likely next step for oil prices was back downwards.

“The new normal for oil is somewhere between $35 and $50. So depending on global activity, we will probably revisit the lower end at some stage,” he told CNBC in a television interview on Monday.

“For now it is pretty much holding up, but I think we are at the up-end of this range and we expect much more of a range-bound market. There is so much supply that will take the global economy two or three years or so to absorb,” he added.

via CNBC

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza