“There may be some consolidation in the near term, but if you look at overall supply-demand fundamentals, they do look very constructive in the second half of the year,” said Virendra Chauhan, Oil Analyst at Energy Aspects.
Chauhan said that he is expecting crude oil prices to remain at USD 80 per barrel in the second half of the year notwithstanding a supply situation from OPEC members.
“We do expect Russia and Saudi Arabia to raise supplies if the situation in Venezuela, Iran, and Nigeria deteriorate. We would expect that to put some downside pressure on prices, but would not expect it to go back to USD 60 per barrel. I think we are going to remain above USD 75-80 per barrel for the balance of the year,”Chauhan said.
However he added that this is not their base case.