From Barron’s:
Brent crude has spiked 12% this month after Russia and Saudi Arabia – the world’s top oil producers – indicated that they would extend supply cuts into 2018.
And there could be more upside for the oil price this year. Nomura analyst Gordon Kwan forecasts a rise in the price of Brent crude to $60 a barrel this year and $70 a barrel in 2018. Kwan argues there is a high chance of oil inventories falling back to their five-year average level despite rising U.S. shale oil production given the rebalancing in global oil markets since OPEC and non-OPEC allies kicked off supply cuts in January.