By  Trend

Optimism for oil prices will end soon, Trend reports with reference to the analysis released by the UK-based Capital Economics consulting company.

The price of oil continued to rise this week as investor sentiment was boosted by the possibility of a production cut from Nigeria and reports of reduced exports from OPEC members, said the company.

“We believe that this optimism will soon end. Indeed, we expect that the global composite PMI, which is a coincident indicator, will continue to slide and mean that the latest rebound in the oil price will look on shaky ground,” reads the analysis.

Meanwhile, the company said the price of Pacific coal held steady, shrugging off news reports that coal imports from Australia had been banned at China’s Dalian port.

“What’s more, Glencore, the world’s fourth biggest coal miner, announced that it was capping its annual production at its current level of 145m tonnes per year. Nevertheless, we think that prices will drop in the coming months as demand softens and relatively high current prices encourage production in China to remain elevated. “