S&P Global predicts that Brent crude will reach $55 per barrel in the year-end.

An executive from S&P Global said that the price of Brent crude is likely to drop to $55 per barrel in the year-end. This was stated at Monday's Asia Pacific Petroleum Conference.

Brent crude futures rose about 0.5% to $65.84 a barrel on Monday after OPEC+ decided over the weekend that they would increase output in October, but at a slower rate than previous months. This was due to expectations of weakened global demand.

Dave Ernsberger is co-president of S&P Global Commodity Insights. He said, "We continue to see prices moving closer to $55 a barley dated Brent as OPEC continues to unwind its production onto the market."

He said that if there is a huge surplus, and Russian oil continues to flow onto the market, stock building stops, and some of these things go into commercial inventories, contangos will blow out. We can see prices lower than this."

When prices for immediate months are lower than future ones, it indicates that supplies are adequate.

Dated Brent is the benchmark for oil futures and is used to price over 60% of global crude traded.

(source: Reuters)