Brent Crude continues to trade above USD 70 a barrel mark supported by Saudi talk of extending output cuts into 2019. In an interview with CNBC-TV18, David Lennox of Fat Prophets shared his views and outlook on the same.
Markets are now getting a big concern that the US may apply sanctions to Iran and 3.89 million barrels of oil production that comes from that country at the moment maybe sanctioned and that would put a significant hole in the supply. So that is why we have probably seen the crude and the Organization of the Petroleum Exporting Countries (OPEC) prices rising, he said.
We are not looking at short-term, the end of the year price for Brent is between USD 74 per barrel and USD 84 per barrel, he added.
We would expect to see more modest increase in the Brent price over the course of 2018, said Lennox.