Moody's: Oil prices to range US$40 to US$60 until 2018

The US-based ratings agency, Moody’s Investors Service published a latest outlook on oil, noting that both crude benchmarks will remain between US$40 and US$60 a barrel until at least 2018.

Key Quotes from the report:

“The improved oil price environment, as well as cost rationalization, will provide an upside to earnings. In addition, we expect that upstream acquisitions will increase, based on the announced divestment plans of global oil & gas majors in Asia”

“Yet even with these reductions in output, we believe prices will remain range-bound—and possibly volatile—amid significant global supplies, increases in US shale production and potential noncompliance with proposed production cuts, coupled with tepid demand growth”

“Specifically, Moody's expects a healthy refining margin of US$5 to US$5.50 per barrel over the next two to 18 months. Such levels are in line with long-term average prices”