Organisation of the Petroleum Exporting Countries’ (OPEC) meeting and of course the falling US dollar is driving crude prices higher, said Peter McGuire, CEO of XM Australia, on Wednesday.
Oil prices jumped to a two-year high, with Brent soaring past the USD 70 a barrel mark on Tuesday, June 1. This comes against the backdrop of OPEC and its non-OPEC partners agreeing to gradually ease production cuts.
Speaking in an interview with CNBC-TV18, McGuire said, “We were expecting it (crude) to get there (USD 70 per bbl). OPEC meeting and falling US dollar is driving crude prices high. There is probably a couple of dollars more in Brent; certainly, West Texas Intermediate (WTI) and maybe WTI will get through USD 70 per bbl.”
“It’s too hard to forecast where we will end up, but certainly over the next couple of months we could take USD 75 per bbl handle for Brent and that could be mid-July or start of August,” he said.
For the entire interview, watch the video.