Brent oil prices have had a moderate increase after the risk premium eased that followed Friday’s terrorist attacks in Paris.
Brent crude futures increased 7 cents at $44.63 a barrel, while the front-month US crude futures declined 10 cents at $41.64 a barrel, Reuters reported.
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According to analysts, oil prices may remain low for the rest of 2015 and into 2016 despite the attacks that took place in Paris and French retaliation against Syria’s Islamic State.
Based on estimates, it is believed that production for the year will surpass demand by 700,000, up to 2.5 million barrels a day.
PVM Oil associates analyst Tamas Varga told the news agency: "Unless the geopolitical tensions, which have obviously risen since Friday, are going to be manifested in physical supply destruction in the Middle East, I think sentiment should remain more bearish than bullish."
BMI Research said that crude market which is well-supplied and high production in the Organisation for Economic Cooperation and Development countries may avoid geopolitical premiums building in oil prices.
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By GlobalDataThe US Commodity Futures Trading Commission said that during the week up to 10 November financial managers reduced their net long crude futures and options positions.
Image: Oil prices may remain low for the rest of 2015 despite the Paris attacks. Photo: courtesy of renjith Krishnan/FreeDigitalPhotos.net.
