Fitch announces oil price forecasts

By  Trend

Global oil prices will soon be in the range of $50-75, Dmitry Marinchenko, oil and gas director at Fitch Ratings, said at the Fitch Ratings annual conference in Baku, Trend reports.

According to Marinchenko, Fitch expects that the lower limit of oil prices will be $50-55, with the upper limit standing at about $70-75.

He noted that oil prices have significantly increased since the beginning of the year, which was promoted by the OPEC+ agreement and the current political landscape.

He added, however, that there are factors that could lead to lower oil prices.

In particular, the situation in Iran and Venezuela may affect the oil prices, should it remain unchanged over the next 2 years.

An agreement on reducing daily oil production by 1.2 million barrels was reached at the 5th OPEC and non-OPEC Ministerial Meeting in Vienna on December 7, 2018. As part of the agreement, Azerbaijan has reduced daily production by 20,000 barrels since January 1, 2019.

As of the morning of April 4, the cost of Brent crude oil exceeded $69 per barrel.