CrUDE SUSTAinS UPwArD TrEnD AS STABiLiTY rETUrnS TO MArKET

dubai — Oil prices are expected to continue their upward trend amid expectations that the USChina trade war will be solved and Opec+’s decision to implement a 1.2 million bpd production cut will shrink an oil glut that emerged in the second half of 2018.

West Texas Intermediate (WTI) and Brent saw their second week of gains, with WTI climbing about 7.6 per cent — the best showing in six months — and Brent rising about six per cent. The two benchmarks ended the week at $51.99 and $60.48 a barrel, respectively.

The implementations of a supply cut deal by the Organisation of the Petroleum Exporting Countries (Opec) and its allies and lower Iran oil exports due to US sanctions also supported the two benchmarks to strengthened their gains in 2019 after facing a volatile fourth quarter last year. “We think the rally in oil prices has further to run in the first quarter,” Standard Chartered wrote in a latest note.

Oil prices, which fell for the first time in two weeks on Friday, are expected to achieve an equilibrium mark during the first quarter of 2019 and then remain stable for the rest of the year. Investment banks and consultancies see that oil will be stable above $60 a barrel.

“Oil prices are likely to trade between $60-70 a barrel by mid2019,” according to Arab Petroleum Investments Corp (Apicorp).

Indosuez Wealth Management, in its global outlook 2019 report, assumed that WTI’s price will be ranging between $60-$65 per barrel this year.

Morgan Stanley does see a “partial rebound” of Brent oil prices into the mid-$60s. “The oil market looks to be broadly balanced in

BrEnT MOvEMEnT in 2019