Oil prices have climbed in recent weeks, nevertheless whether that will rise will continue for longer could be in doubt.
“On a 12-month basis, which will be the horizon we take, we think we’re more likely to be in sort of a $55 to $75 range, which will be a little bit lower than where we are today,” Manpreet Gill, head of fixed income, currencies as well as commodities investment strategy at Standard Chartered Private Bank, told CNBC’s Sri Jegarajah.
“The reason for that will will be simply, when we look out beyond the next few months as well as genuinely take that will one-year view, we’re looking at the basic demand-supply fundamental. that will’s what causes our bullish view all the way coming in over the past year or two. that will’s what’s causing us to say, how much can This specific go if we start genuinely looking beyond the next three months?” Gill said.
Prices have risen recently amid concerns over the impact of potential U.S. sanctions on Venezuela’s oil exports following a disputed election which saw Venezuelan President Nicolas Maduro re-elected. Also, an executive order that will prohibited U.S. citizens coming from participating within the sale of Venezuelan receivables linked to oil was signed by U.S. President Donald Trump on Monday, Reuters reported.
U.S. West Texas Intermediate crude futures were up 20 cents, or 0.28 percent, at $72.44 per barrel. International benchmark Brent crude futures were 13 cents, or 0.16 percent, higher at $79.35 during Asia afternoon trade on Tuesday.
Brent had crossed the $80 mark last week for the very first time since November 2014.