Mubasher: Moody’s, the global ratings agency, has reduced its estimates for oil prices this year on concerns about oversupply.
The agency forecasts Brent crude to average $33 a barrel in 2016, down from $43 previously. The forecast for West Texas Intermediate has also been trimmed to $33 a barrel but from $40 previously.
It expects that prices for both benchmarks will rise by $5 per barrel on average in 2017 and 2018.
"OPEC countries continue high levels of production in the battle for market share, contributing to the current oil glut despite moderate consumption growth by key consumers such as China, India and the US," Terry Marshall, a senior vice president at Moody’s.
"Iranian output is also expected to rise following the lifting of sanctions, and this will “offset or exceed production cuts in the US,” he added.
