Crude oil prices are predicted stable for the next 18 to 24 months, according to Wood Mackenzie research and consulting company.
"The stagnant price is considering bigger supply reduction from Iran over US sanction. But on the other hand, oil supply from US will be increasing," said Wood Mackenzie Asia Pacific Upstream Oil & Gas Research Director, Andrew Harwood, in Pertamina Energy Forum 2018 held in Jakarta, said a message from the Indonesian company.
"We expected that oil price to remain stable for at least in the next 18 months," he noted.
Harwood mentioned that crude oil price has been driven by market supply in the recent weeks.
In the same event, Head of Asia Pacific Energy & Natural Resource Practice from management consultant Bain & Company, Brian Murphy agreed by mentioning that oil price direction in the last months has been more aligned with the fundamentals than the previous few months.
Earlier, Ann-Louise Hittle, vice president, Macro Oils, at Wood Mackenzie told Trend that for 2018, the company is forecasting year-on-year oil supply growth of 2.2 million b/d compared with a gain in global oil demand of 1.6 million b/d which points toward enough supply to meet demand for the year.
Ann-Louise Hittle believes that political risk remains a large factor in the outcome for prices and could drive them higher, as an example, if the tensions between the US and Iran were to escalate sharply and lead to potential conflict.
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