Barclays: Oil Prices To Drop This Quarter

7 Aug 2017   Prices

The combination of bullish indicators that boosted oil prices last month are unlikely to last, and the price of oil in the third quarter is expected to drop from current levels, Barclays said in a recent research note. “Prices have moved higher, due to a perfect combination of a favorable macro environment, a seasonal uptick in consumption, continued inventory drawdowns, and geopolitical unrest,” according to Barclays’ note, as quoted by CNBC . However, the bank noted that “Certain factors that supported prices in July are unlikely to last, and we expect a downward correction during this quarter.” On the last day of July this past Monday, WTI prices closed above US$50 for the first time in more than two months. The price of WTI gained 9 percent in July, the best month since April 2016. But as we are moving into the second month of the third quarter, Barclays […]

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