Today’s Pickup: Barclays predicts oil price to reach $70 next year

From FreightWaves. As the volatility in oil prices continue, there have been different opinions on its future with some predicting a three digit rate in a few years while a few hopeful of a downturn. Banking major Barclays has a rather interesting take on the situation, reasoning out that the prices would fall to around…

Diesel Fuel Pump

From FreightWaves.

As the volatility in oil prices continue, there have been different opinions on its future with some predicting a three digit rate in a few years while a few hopeful of a downturn. Banking major Barclays has a rather interesting take on the situation, reasoning out that the prices would fall to around $70 per barrel next year rather climb higher.

A report published by Barclays mentions that the Iran crisis might be all but over, as Iranian oil exports have crashed to nearly 0.5 million barrels per day (bpd) – a number which it believes might not go down any further. Despite the U.S. tightening the screws around countries looking to buy Iran’s oil, countries like India and China still continue their trade with Iran, and this situation might not change in the future.

Barclays contends that the low spare capacity scare from OPEC is not something to worry about, as it believes there is ample capacity in store, although Saudi Arabia continues to shield the strength of its reserves. Barclays reasons out that OPEC’s hesitation to increase production is not because it wants to push the prices up, but because it might cause the prices to crash if there’s an economic slowdown.

See the complete post from FreightWaves online.

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