Oil Prices Expected to Rack Up Fourth Week of Gains Despite Drop From $70

The price of Brent crude oil has dropped from the 2014 high of $70 per barrel that was reached yesterday. However, it is still on track to mark its fourth straight week of gains.

At around 2 pm today, Brent was down by 0.59 percent to $68.85 per barrel while the US benchmark was down by 0.94 percent at $63.20 per barrel.

Yesterday, Brent reached $70 per barrel on support from the declining stockpiles and production of the United States, despite concerns among some traders and analysts that its rally was already running out of steam.

The market has also been troubled by production curbs that are led by and Russia and the Organisation of Petroleum Exporting Countries (Opec), which are due to last until the end of this year.

However, the market analyst at Forex, Fawad Razaqzada, stated: “US shale oil output should rise with firmer prices, and this may keep the market amply supplied in the coming months. So, I would be very surprised if Brent oil goes significantly above $70-$75 or WTI north of $65-$70 a barrel.

“In fact, crude oil may have reached a short- or medium-term peak already.”

However, Razaqzada said that it was far too early to say that Brent oil had reached its peak.

A survey that was conducted by Reuters among more than 1,000 energy professionals discovered that they expected crude prices to stay in a range of around $60 to $70 per barrel this year.