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Oil prices forecast to rise to $40 per barrel

Oil prices are on the rise, gains in Asia, strong US job growth announced on Friday, and a decrea...
Newstalk
Newstalk

08.53 7 Mar 2016


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Oil prices forecast to rise to...

Oil prices forecast to rise to $40 per barrel

Newstalk
Newstalk

08.53 7 Mar 2016


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Oil prices are on the rise, gains in Asia, strong US job growth announced on Friday, and a decrease in drilling in the US have helped prices to rebound.

In the US the West Texas Intermediate increased by 67 cents (1.87%) to $36.59 while Brent crude futures increased by 75 cents to $39.42 a barrel.

This indicates that oil prices will hang in the mid-30s and move closer to $40 in the coming weeks.

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US production fell for the 11th straight week to the lowest rate since December 2009 as producers felt the squeeze.

Saudi Arabia, Russia, Qatar and Venezuela agreed in mid-February that they will freeze output if other producers agree to follow suit. This would be the first agreement between OPEC and non-OPEC producers in 15 years.

Nigerian representatives said last week that a number of key oil producers will meet later in March to discuss the proposed output freeze agreement with Russia.


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