OIL PRICES

摘要

Both Brent and West Texas Intermediate (WTI) have gained ground since early February, when their respective spot rates dipped to US$27-28 per barrel. Since then, prices rose above US$40 for both measures on March 22 and have since stabilized between US$35-45. Positive US economic data and signs of firming in China have helped to support crude. Meanwhile, output amongst non-OPEC producers has been contracting. However, prices have been volatile ahead of the April 16-17 meeting in Doha between OPEC and non-OPEC producers (after our April 11 deadline). There are concerns that the meeting will do little to rebalance oversupply against lacklustre demand, even with a production freeze at current levels. Some producers are not expected to agree to an output freeze anyway.