Fitch: Oil is a long way to break the $60 mark

Fitch: Нефть еще долго не сможет пробить отметку в $60

Oil will not be much more expensive

The Agency has updated the forecast for price of oil.

Oil prices unlikely to exceed $60 per barrel for a long time. This is stated in the forecast of analysts of international rating Agency Fitch Ratings, reports Interfax-Ukraine.

“Reducing production costs in the world, a significant potential growth of shale production in the United States and the ability of this segment to respond quickly to changing market conditions should keep the average annual price of oil below $60 per barrel in the long term. But oil prices will remain unstable and may periodically exceed our estimates,” – said in the forecast.

The Agency has updated the forecasts to reflect the limited capacity of the higher prices in the long term.

“We have also lowered our forecast cost of gas at the British National Balancing Point (NBP) in accordance with our updated estimates of the cost of oil and expected increase in LNG capacity in the world is likely to lead to oversupply”, – stated in the message.

Analysts doubt that OPEC measures can really affect the growth Outlook. According to the Agency, the average rate of compliance by OPEC in July fell to 75% from nearly 100% in the beginning of the year. He has improved to 82% in August, but overall, Fitch expects the average compliance in the second half of 2017 and beyond will be weaker than in the first half.

Earlier it was reported that oil prices rose to a maximum early in the year.