Jadwa forecasts oil to average $68 pb in 2018

Jadwa Investment has maintained its expectations for oil prices this year at an average of $68 per barrel, according to a recent report.

The research firm said that although crude oil is currently trading near $72 a barrel, prices year-to-date are near an average of $72, noting that trade conflicts between the United States and both the European Union and China led to an increase in prices to $75 per barrel in the second quarter of 2018, increasing by 12% compared with Q1.

In May, Brent reached its highest level near $80, with growing fears of limited supplies due to the American-imposed sanctions on Iran, and the decline in production by members of the Organization of the Petroleum Exporting Countries (OPEC).

Demand is expecting to play a vital role in setting prices in the third and fourth quarters of the year, Jadwa indicated.