Fitch: Oil prices will remain relatively high

Baku. 15 June. REPORT.AZ/ Oil prices will remain relatively high for the rest of 2018 due to ongoing geopolitical tensions and strong demand.

Report informs, it is stated in the report of Fitch international rating agency.

However, Fitch considers that oil has gradual price fall to below USD 60/bbl by 2020. Now we assume Brent will average USD70/bbl in 2018 and USD65 in 2019, compared to the previous assumption of USD57.5 in both years.

Regarding to our long-term price assumptions, including for 2020, are unchanged at USD57.5/bbl for Brent and USD55 for WTI. Nevertheless, higher-than-expected cost inflation may push prices above our long-term expectations; however, we believe per-barrel full-cycle costs have remained relatively unchanged so far. Much also will depend on whether producers would be able to preserve efficiency gains achieved so far as oil prices remain high.