Brent oil should remain near $50.00 a barrel amid output freeze hopes - Commerzbank

The price for Brent oil should remain near USD 50 a barrel, as the major oil producers will probably continue to fuel hopes for a production freeze, said Barbara Lambrecht, analyst at Commerzbank.

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“The price for Brent oil should continue trading within a narrow range around USD 50 a barrel next week. Glimmering hopes for a production freeze should support the price, although survey based estimates of news agencies should suggest that OPEC production has risen to a new record high in August. This abundant production is essentially driven by Saudi Arabia, which has expanded its output to a new record of between 10.8 and 10.9 million barrels a day according to informed circles. Also, production in Libya and/or Nigeria could have increased slightly, given that the security situation in these countries has stabilised to some extent.”

“And with regard to the medium- to long-term outlook for the oil market, supply prospects in the US are interesting, which the EIA will present in its “Annual Energy Outlook” in the coming days. US production has recently been surprisingly robust, and the EIA has raised its production forecast also for the coming months. Should its longer-term outlook also turn out much more optimistic than in the past, pointing to higher productivity in shale oil production, this would probably again put a strain on the oil price.”