SINGAPORE —Dated Brent crude prices are likely to fall to around $55 per barrel by year-end, an S&P Global executive said at the Asia Pacific Petroleum Conference on Monday.
Brent crude futures were up about 0.5 percent on Monday at $65.84 per barrel after OPEC+ agreed over the weekend to raise output from October at a slower pace than in previous months, on expectations of weaker global demand.
“We still see prices coming down closer to the $55 a barrel dated Brent, with OPEC continuing to unwind production into the market,” said Dave Ernsberger, co-president, S&P Global Commodity Insights.
“If there’s a massive surplus, if Russian oil continues to flow into the market, if stock-building stops and some of this stuff goes into commercial inventory, contangos blow out, we can see a lower price than that,” he said.
Contango occurs when prompt prices are lower than those in future months, indicating comfortable supplies.
Dated Brent is used to price more than 60 percent of globally traded crude and underpins oil futures. — Reuters
