Chief strategist at commodity markets, Dutch Bank ING Hamza Khan admits that the price of oil can drop to $22.5 per barrel in 2016 in the case of the implementation of a number of negative factors.
In accordance with ING risk scenario, in 2016, the price of Brent will be about $22.5 per barrel, the price of WTI — $21,25 per barrel. In 2017, the price of Brent will be at $31,25 per barrel, the price of WTI — $26,25 per barrel, according to RNS.
“Although our baseline scenario assumes a recovery in oil prices in the second quarter of 2016, we have identified four key factors that can cause a longer period of low prices and the average oil price of about $31 per barrel in 2017,” said Khan.
Among these factors he pointed to a rising demand in the oil market, limited decline in oil prices (not from OPEC producers, especially Russia and the United States may offset any decrease in production), low cost of processing and transportation of oil, the pressure of speculators on prices.
Meanwhile the world prices for “black gold” rose Monday morning, crossed into “red zone” and continue to fall. So, as of 15:27 GMT April futures price for North sea petroleum mix of mark Brent was down 2.2% to $33,31 per barrel, while the price of March futures for oil of mark WTI have fallen by 2.9% and ended at $29,99 per barrel.
However, later, says “Газета.Ru” March futures on WTI have fallen to the low of $28,98 per barrel.