Brent Prices Stable Above $60 Through 2014

Brent crude oil made its way toward $63 per barrel on Monday morning after analysts predicted that the commodity would remain above $60 through the rest of 2015. The commodity traded at $62.10 at 8:00 GMT, a major recovery from last week’s lows below $60.

Brent prices have been steadily declining since OPEC decided not to cut production at its November meeting. With supply far outpacing demand across the globe, the decision to maintain the cartel’s production levels weighed on oil prices. 

The cartel looks unlikely to go back on its decision as Saudi Arabia has been very vocal about its support for the November decision. The kingdom has said that the current prices are not solely the responsibility of OPEC and that producers outside the Gulf region are causing the global supply glut to grow. Saudi officials also blamed speculative traders and misinformation for the sharp decline in prices.

CNBC reported that most analysts believe that crude prices will remain above $60 for the remainder of the year. However, prices aren’t expected to see much support either as the commodity’s current fundamentals have made it nearly impossible for a rally. Unless there is a major supply interruption, crude prices will likely remain in the low 60’s.

For 2015, most are forecasting crude to trade between $68 and $64 given the current state. Next year could also bring renewed volatility for crude prices, with some saying the commodity could swing as low as $41 in the coming months. Still, prices are expected to remain relatively stable through the end of the year as traders wind down their positions.