Brent oil prices may reach the level of $70 per barrel against the situation in Saudi Arabia but fundamental factors support a correction to $60 per barrel and lower, experts say.
The oil price hike to the all-time high values since summer 2015 is just partly related to anti-corruption arrests in Saudi Arabia, analysts say. The news background is generally favorable for oil prices and Brent oil prices may be above $70 per barrel for a short time, experts say. Nevertheless, oil prices will then go down to $60 per Brent barrel and lower, they believe.
“Oil prices are fueled by domestic political developments in Saudi Arabia, which may probably agitate the market for several weeks more. Dramatic price spikes for raw hydrocarbons are possible during that time. The price may even reach $70 per barrel in case of troubles with supplies from Saudi Arabia, although there are no signs of situation development under the worst case scenario so far,” department head from Freedom Finance Georgy Vaschenko says.