Oil Prices Rise On Geopolitical Concers

Published 06/18/2014, 07:56 AM
Updated 05/14/2017, 06:45 AM

The rising unrest in Iraq has added to the geopolitical concerns in the oil market and, consequently, the oil price has moved up a notch to around USD112-113/bl - the highest level since last September.

The geopolitical mess in the Middle East together with the latent worry that new sanctions on Russia could affect its oil exports will probably continue to plague the oil market over the next couple of months.

Furthermore, Saudi Arabia is in a strong position to mitigate smaller production gains or losses and keep overall OPEC production close to the 30mb/d target.

Hence, while we stick with our previous view that the oil price is bound to head lower and reach USD100/bl within the coming year, the above-mentioned factors may keep it stuck in the USD106-113/bl range over the coming months.

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