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Have oil prices finally turned the corner?

Gwyneth Yeo Published on Wed, Sep 07, 2016 / 12:00 PM GMT+8

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SINGAPORE (Sept 7): DBS Group Research is raising its oil price forecasts by US$10 per barrel to between US$45 and US$50 per barrel for FY16 and between US$50 and US$55 for FY17. This comes after sentiment on the oil market turned positive in May.

Year to date, Brent crude oil prices have averaged US$42.55 per barrel, owing to the supply outages in Canada and Nigeria which were matched by better-than-expected demand for petroleum products from India and China.

Despite a fall in oil prices since its peak of US$52 per barrel in June, DBS believes that the appreciation of the USD and the gradual resumption of supplies from Canada would bolster oil prices from its earlier lows.