Oil prices receded slightly on Monday but remained close to their highest point since early February, due in part to output predictions put forward by Saudi Arabian Energy Minister Khalid Al Falih, according to Reuters.
Brent crude dipped 17 cents to $67.1 a barrel following a spike of 4% during the past week. US West Texas Intermediate crude was at $63.5 a barrel.
“There is a bit of a bearish twinge to everything … but we believe in the second half (of the year), you’ll see demand pull the market back up again,” Natixis oil analyst Joel Hancock said.
“Our view is demand will be strong enough, but we don’t see a big breakout,” he said, predicting a price range of $60 to $70 this year.
Saudi Aramco Chairman and the kingdom’s Energy Minister Khalid Al Falih, stated over the weekend that the country’s crude production in the first quarter of 2018 would be well below output caps, with exports averaging below 7 million barrels per day.
Meanwhile, in the US, US oil firms added one oil rig last week, taking the total count up to 799, the highest since April 2015, according to data provided by Baker Hughes.
