Analyst Torbjorn Kjus hit the mark with predictions – OBI Online

DNB Markets expect the oil price will rise to 60 dollars a barrel in the fourth quarter of this year, and further to respectively 65 and $ 70 on average in 2016 and 2017.

The subsequent five years estimate brokerage oil prices will be within a range between 60 and 80 dollars a barrel, as it was in the period 2005 to 2011.

“We hit well on our oil price estimate for the first half which we published on 9 January. Our forecast was for $ 55 a barrel for the first quarter and 63 dollars a barrel for the second quarter. They were respectively $ 55.1 a barrel and $ 63.5 a barrel so we could hardly have been closer, “writes oil analyst Torbjorn Kjos DNB Markets in the report” Economic Outlook “.

He states that growth in demand for oil is strong due to the marked fall in prices, but far from strong enough to take away the huge oversupply of oil in the market.

“OPEC continues its struggle to protect its market share. Production levels are record high both in Saudi

Arabia and Iraq. After nuclear treaty from June will also oil from Iran from entering the market. Investment falls sharply. It will partly frame production in the long term, but cost cuts will also lead to cheaper and more efficient recovery. Profits Offer will continue for the next few years, but the balance will be progressively tighter, “the report said.

Wednesday costing Brent oil around $ 49 a barrel.