Crude oil experts have already improved their average price predictions for this year for this first time in ten months. However, they also stressed that investor sentiment might dip in the short term without substantial improvement in key market fundamentals.
The recent surge should be regarded as a sort of comeback from quite bearish sentiment, which took place at the very beginning of 2016, with abolished Iranian sanctions and China headlines. Those reason actually spurred a slew of irrational moves in the global oil market.
The survey of thirty one economists as well as financial analysts predicts Brent crude would trade $38.60 in the second quarter of 2016 compared to the current level of $40.
The vast majority of analysts participated in this survey agreed that crude prices might not have an obvious reason to drop below the lows of January, though softer demand projections as well as rather an downbeat economic outlook will probably limit the scope for greater revenues.
Analysts also added that Iran’s recent refusal to participate in the production freeze initiative justifies more output cuts from other oil-producing countries.