Oil prices were firm on Wednesday on expectations of tighter markets once US sanctions target Iran's petroleum industry from next month.
Bart Melek, director and head of global commodity strategy at TD Securities, spoke to CNBC-TV18 about the trends in the oil markets and shared his outlook.
“We are likely to be range bound right now. I think there is a definite risk of crude oil moving higher. It is very possible that we will see levels that haven’t been around since before the decline in 2014. $90 per barrel is very much within the realm of possibility,” he said.
“Organization of the Petroleum Exporting Countries (OPEC) does have significant capacity for the time being but much will depend on how much crude source out of Iran is taken out of the supply chain,” he added.
Speaking about how low can Brent prices go, Melek said, “Our forecast indicates that WTI will most likely be above USD 72 per barrel for the time being and for Brent we are certainly going to be higher in our estimates and we are looking at a range of USD 84-82 per barrel.”
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