Oil unlikely to go above $70 through 2020, says Moody’s

An oil worker passes the waste gas venting pipes on the Casablanca oil platform, operated by Repsol SA, in the Mediterranean Sea off the coast of Tarragona, Spain, on Tuesday, June 28, 2016.  Photographer: Angel Navarrete/Bloomberg
An oil worker passes the waste gas venting pipes on the Casablanca oil platform, operated by Repsol SA, in the Mediterranean Sea off the coast of Tarragona, Spain, on Tuesday, June 28, 2016. Photographer: Angel Navarrete/Bloomberg

Brent crude is unlikely to go above $70 a barrel through 2020, according to US credit rating agency and financial analyst Moody’s.

In a new investor report, the firm said prices will “settle” between $50 and $70.

Moody’s said recent volatility, which has seen the price dip by around ten dollars in the last month, reflects concerns about a weakening global economy and higher production from Saudi Arabia and Russia.

However the firm also stated the recent output cut of 1.2million barrels per day from Opec will “contribute to a more balanced global supply and demand” which will stabilise prices.

Moody’s gave a “stable” outlook to the oil and gas sector due to increased focus on investments to boost production.

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