Brokerage firm Moody's on Friday said they expect the crude oil price to be in the range of $50-70 per barrel as it gets the support of fundamentals.
“Crude oil prices have been volatile and that is inline with what we have expected," Vikas Halan, Senior VP, Moody’s.
Ever since October prices where closer to $85 we maintained that fundamentals do not support crude prices to be that high, he said, adding that they were high in the run-up to sanctions and it did get waived off and therefore, the oil prices saw a bit of decline with increase in production increase coming from the US.
The oil prices are not too far from the one-year lows due to the supplied build up in the global markets. The US, Russia and Saudi Arabia are all dominating the global supply producing more oil than the other 15 members of the OPEC.