Oil prices hit 2016 high on output-freeze hopes
Oil prices have surged more than 50 per cent from 12-year lows since the Organisation of the Petroleum Exporting Countries (OPEC) floated the idea of a production freeze, boosting Brent from about $27 and US crude from around $26.
US oil is heading for a fifth week of gains, while Brent is on course for a fourth weekly increase, the longest rising streak in about a year for both benchmarks.
But some are urging caution after the strong gains.
BNP estimates there will be a 1 million barrel increase in global stocks by the end of the first half of 2016. (by Reuters, Via Irish times)
“Global fundamentals are little changed and oil has instead been lifted by higher risk-appetite,” BNP Paribas said in a note. “A dialogue among key producing countries to address oil output will at best yield a decision to freeze output, but not the much-needed reduction required to rebalance the market.”
BNP estimates there will be a 1 million barrel increase in global stocks by the end of the first half of 2016. (by Reuters, Via Irish times)