OIL RE­COV­ERY

Finweek English Edition - - THE WEEK -

Oil prices ral­lied to seven-month highs in the sec­ond week of June after Abu Dhabi fore­cast prices could climb above $60 a bar­rel amid a sup­ply over­hang that is con­tract­ing more quickly than pro­jected, NKC African Eco­nom­ics said in a research note. Tight­en­ing sup­plies stem­ming from at­tacks on Nige­rian oil in­fra­struc­ture also bol­stered the price of crude, it said. Brent crude oil was trad­ing at $51.50 a bar­rel at the time of writ­ing, after breach­ing the sig­nif­i­cant $50level on 26 May, nearly dou­ble its 13-year lows of below $27 reached in Jan­uary. The slump in prices has forced higher-cost pro­duc­tion, notably shale pro­duc­ers in the US, to cut pro­duc­tion and halt in­vest­ment plans. (Also see page 30.)

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