Oil Prices have Additional Room for Rebound, Brent Crude Likely to Average Usd46/bbl in Q4 2016

The drop in oil price after the Doha talks failed to come to an agreement regarding freezing oil output was for a short period of time. The price of Brent crude had reached more than USD 43/bbl this morning, the same level at which the market closed on Friday.

The recovery of oil price shows that the talks on output freeze have not been much of importance to the 50% rally in prices last month, according to Danske Bank. Also, another effort for discussion before the OPEC’s meeting on 2 June is expected to be futile, noted Danske Bank. All the oil producers that participated in the Doha talk are pumping oil at almost full capacity and are unlikely to boost capacity significantly in the near future.