Oversupply of crude oil will continue to put pressure on prices in the first quarter of 2019, but producer cuts will increase crude oil prices over the year, according to energy information provider Argus Media.
Prices are likely to rise next year, however, as supply drops in the organization of oil-exporting countries. The cuts are scheduled to take effect in January.
OPEC and allied non-OPEC oil producers including Russia agreed in early December to cut production by 1
The 15-member organization said it would reduce its output by 800,000 barrels per day, while Russia and the allied non-OPEC makers will contribute a daily drop of 400,000 barrels.
Argus forecasts that Brent crude will trade around $ 65 a barrel in the first quarter, rising to $ 68 in the second quarter, and reaching the low $ 70 in the third quarter. Ahmad predicts that prices will break $ 80 per barrel in the fourth quarter of 2019.
Average Brent oil prices will be under $ 70 in 2019, according to Argus & # 39; forecast.
Sam Meredith of CNBC contributed to this report.