© Daniel Flynn
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I believe that during the summer driving season here, in the United States, we will most probably test $60 a barrel, especially if the Federal Reserve makes a decision on interest rates this summer. Nevertheless, I see the fear factor of the ‘Brexit' coming in, which would hold prices down. Beyond that, once we get through the fears of the vote on June 23, I believe the market will seek its own level, and towards the end of the year we could be trading around $70-75 level in crude oil, to my mind.
What will be the main drivers for oil prices in the near future?
At this point we have OPEC and non-OPEC countries that are not making any deal in this regard. Furthermore, we have geopolitical fronts whether it be Libya, Iraq, Iran, Nigeria and also Venezuela, that are having trouble exporting. Also, we had some floods in Houston last week, which disrupted the flow of oil in the Houston Shipping Channel. Thus, what I believe is that we are going to see some shortages in product, which is going to lead to the higher prices.
What is your outlook for oil prices in the short and long term?
As I mentioned, we will presumably test $60 a barrel depending on the ‘Brexit' situation. Towards December, I am expecting prices to be around $70-75 a barrel.