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Brent Plunges: We Maintain 2015 Forecast At USD98/bbl‏

Published 10/01/2014, 07:37 AM
Updated 05/14/2017, 06:45 AM

The Brent crude oil price has dropped below USD95/bbl for the first time since the summer of 2012 as production in Libya continues to surge and demand has weakened on the back of the recent growth slowdown in China and sharp dollar rise.

In our view, Brent has reached the bottom now. We forecast Brent to rise towards an average of USD99/bbl in Q4 15 and average USD98/bbl in 2015.

Our forecasts for Brent are slightly above the prices in the forward market and, therefore, we recommend clients on the consumer side to consider hedging their exposure at the current low levels.

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