Moody’s reiterates 2018 oil price forecast of $40-60 per barrel

MOSCOW, Dec 5 (PRIME) -- Global rating agency Moody’s has maintained its oil price outlook for 2018 at U.S. $40-60 per barrel despite a decision of OPEC and non-OPEC states to extend an oil production cut agreement until the end of 2018, it said in a statement on Tuesday.

Moody’s is committed to its medium-term oil price outlook of $40-60 per barrel until at least 2019 due to rising production, significant global inventories and a slow growth of demand, it quoted Senior Vice-President Terry Marshall as saying.

In November 2016, OPEC and non-OPEC states agreed to reduce their oil production to rebalance the market. Russia joined the agreement in December 2016 with a promise to cut output by 300,000 barrels daily compared with the level of October 2016. The agreement was initially concluded for January–June, prolonged for nine more months in May and then until the end of 2018 in November.

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