Oil pricing agency S&P Global Platts on Tuesday said it expects crude oil to trade around $70 per barrel by the fourth quarter, mentions a new source in CNBC TV 18.
Interview with Paul Hickin, associate director of oil
In an interview with CNBC-TV18’s Manisha Gupta, Paul Hickin, associate director of oil, said, “The market is tight, the crude stocks are coming down quite significantly in the US and that is a big barometer for oil prices and where they are going. However, at the same time, there is a lot of oil still sloshing around and China holds a lot in reserves. OPEC + has a significant amount of spare capacity especially in Saudi Arabia and Russia. Just a couple of months ago we had OPEC talking about producing more. They meet monthly and they must be itching to address the issue if prices continue to go further.”
David Lennox, analyst of Fat Prophets
“We got a price target at the moment of between $70-75 per barrel for Brent. So it has broken through the top end of our price but there is still a lot of latent supply that hasn’t come back on stream. Even in the US, there is well over a million barrels that can come back. So once we see the prices probably move towards $90 per barrel, we think that is when we are going to see a lot of latent production coming back on stream,” Lennox said.
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Source: CNBC TV 18