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Bloomberg
The US-China trade war and the growth of American oil supply will keep crude prices in check, notwithstanding Middle East tensions, according to the head of one of India’s biggest refiners.
Brent crude will likely remain in a range of $60 to $70 a barrel and could fall towards $60 if demand worsens, said Mukesh Kumar Sura-na, the chairman and managing director of Hindustan Petroleum Corp. The global benchmark was trading at $63 a barrel.
“Oil-producing countries have to ensure that crude remains relevant,†he said in an interview. “So prices have to be kept in a reasonable range.†Brent has fallen around 15 percent from a high in late-April amid a deterioration in the global economy, with the International Energy Agency cutting its 2019 forecast for worldwide oil-demand growth for a second month in June. Rising tension in the Persian Gulf has given prices a relatively small boost as supply, particularly from North American shale, remains ample.