Having fallen from their July highs, oil prices will trade in the $100-140/barrel range in the coming months, in line with the underlying supply/demand dynamics, according to Angus McPhail, global oil and natural resources analyst at Alliance Trust.
He said: "Oil prices have been extremely volatile over the last few months reflecting political developments as well as the flow of economic and oil market data. We expect prices to be in the middle of this range at $124 over the next six months." McPhail added that 'demand destruction' had been raised as a reason why oil prices had dipped in recent weeks. He explained: "Demand destruction refers to a permanent change in consumer habits and consumption patterns. The current oil shock may have led to some permanent changes in transportation, notably in the US, where demand for SUVs has fa...
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