Global Trading Giants Forecast Oil Prices Between $60-$70 Amid Surplus
(MENAFN- The Rio Times) Executives from trading houses Gunvor and Trafigura forecast oil prices to settle between $60 and $70 per barrel.
This outlook stems from slow demand in China and ongoing global surplus. At the Asia Pacific petroleum conference (APPEC) , the recent drop in oil prices was a key topic of discussion.
Prices had previously exceeded $90 per barrel but fell due to diminished demand from major economies such as China and the USA.
OPEC and its allies, collectively known as OPEC+, recently delayed a planned production increase forthe coming months.
Commodity traders warn that this pause might offer only temporary relief. Ben Luckock of Trafigura indicated that prices might soon dip into the $60s unless production cuts continue or are reintroduced more slowly.
Torbjorn Tornqvist from Gunvor mentioned that $70 per barrel is currently a fair price, given the global production exceeds consumption.
He commended OPEC's management but noted the uncontrollable growth in non-OPEC regions could unsettle the market.
Brazil, Guyana, the U.S., and Canada rank among the largest non-OPEC regions noted for their robust growth and unpredictable policies.
Global Trading Giants Forecast Oil Prices Between $60-$70 Amid Surplus
Oil futures rose by $1 to about $72 a barrel early Monday, propelled by a looming hurricane near the U.S. Gulf Coast.
However, these gains later diminished. This price volatility highlights the dynamic nature of oil markets, emphasizing the importance of strategic production control in maintaining global economic stability.
Global Trading Giants Forecast Oil Prices Between $60-$70 Amid Surplus
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