Published : Aug. 3, 2016 - 15:21
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THE INVESTOR] Global oil prices may continue to slide in the second half of this year as crude entered a bearish phase again amid continuing oversupply worries, a South Korean brokerage firm NH Investment & Securities said on Aug. 3.
“Oil prices are expected to move down in the short term through the end of 2016 but not below $35 a barrel,” said Ku Ja-won, an analyst at NH Investment & Securities.
Crude oil futures settled below US$40 a barrel on Aug. 2 for the first time since April.
The New York futures contract for September delivery settled at $39.51 US a barrel, down 55 cents from close on Aug. 1.
That price also represents a tumble of more than 20 percent from its recent peak above US$50 a barrel in June.
Some 20 analysts surveyed by Bloomberg said that global oil prices will rebound to an average of $57 a barrel in 2017, but with slow progress.
“WTI will average $49.50 in the fourth quarter before breaking decisively above $50 next year,” Michael Hsueh, a strategist at Deutsche Bank was quoted as saying by Bloomberg.
By Park Han-na (
hnpark@heraldcorp.com)