Brent crude oil price

Unless the conflict reaches a much bigger scale involving multiple parties, DBS believes US$100/bbl levels are unsustainable.

Downstream companies like Mermaid Maritime and Sembcorp Marine have just started to react to the higher oil prices.

ut the issue is even more pressing because global tank capacity, mostly concentrated in a few hubs like Rotterdam, the Caribbean and Singapore, isn’t available to every producer.

The muted and short-term reaction in the crude oil market on the escalation of conflict between the US and Iran signals the end of petroleum diplomacy between the oil states, especially those in the Middle East.

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.