Short Term Brent Price Forecast

In a recent analysis, brokerage Emkay predicted that Brent crude oil prices would fluctuate between $83 and $92 per barrel in the near term, pending further assessment.

Emkay noted the recent trend of Brent oil prices moving in a certain range, sometimes affected by geopolitical tensions, but after the resolution of conflicts stabilizes. The report highlighted the continued supply of oil in the challenging environment, predicting moderate prices with stable demand, although temporary increases due to seasonal factors are possible.

Conformable Company sustained growth depends on the stability of the global economy and potential interest rate adjustments by the Fed.

However, oil prices recently fell to three-month lows, with Brent near $81 a barrel and West Texas Intermediate (WIT) near $77. This trend followed indications by the Federal Reserve that continued interest rate hikes could reduce energy demand. The Fed’s dovish stance added another bearish factor, adding to the existing weakness in the oil market ahead of the upcoming OPEC meeting.

Although oil prices have eased since mid-April, they have remained elevated in 2024, partly due to supply cuts by the group of producers. Federal Reserve policymakers have suggested waiting for inflation to pick up before considering an interest rate cut, as higher borrowing costs could hamper economic growth and oil demand.

Investors’ expectations of global interest rate cuts eased on softer-than-expected Fed minutes, along with rising UK inflation data and cautious assessments of New Zealand’s inflation challenges. That change weakened Asian stocks. Overall, Emkay’s analysis highlights the complex interplay between geopolitical factors, supply dynamics and monetary policy in shaping oil prices in the current market situation.