Oil: Some upside for prices likely this year - NAB

Analysts at National Australia Bank note that oil prices have been generally subdued this month, although prices have been higher this week, particularly following Iran downing a US drone.

Key Quotes

“Still, at around US$65/bbl, Brent remains below the 70+ levels seen a month ago. Global growth and trade concerns and a muted demand outlook have weighed on the market, although geopolitical tensions in the Strait of Hormuz are challenging this.”

“OPEC may extend cuts further. Our outlook for the oil market is for some upside for prices this year, with Brent reaching US$70 in Q3, however, tensions with Iran are the real wildcard.”