Chris Midgley, Global Director, Analytics, S&P Global Platts expects crude to start softening in 2019.
“This is just a sell-off that we saw in crude yesterday,” he said.
“Demand still looks pretty good, the economy is healthy especially in the US, lower oil prices are good for places like India which has over 80 percent of its products imported, crude imported. So that should help the economy,” he added.
There’s a threat of China imposing tariffs on US crude import and it would support Brent if China imposes tariffs on US crude import, he said.
“The fundamentals feel fairly well supportive still as I look in the next three-four months’ time horizon,” said Midgley.
“We will probably see oil prices in the high $70 per barrel for that period of time, perhaps softening into 2019,” he further mentioned.