KUALA LUMPUR, March 14 (Bernama) -- Moody's Investors Service (Moody's) has raised its medium-term price band for crude oil to US$45 to US$65 per barrel (bbl), from US$40 to US$60/bbl.
In a statement today, Moody's said the continued Organisation of Petroleum Exporting Countries (OPEC)-led production restraints and strong global demand growth have contributed to declining global inventories, offsetting rapid increases in United States' (US) shale production.
At the same time, it maintained the price band for North American natural gas at Henry Hub, the industry's chief measure of natural gas prices at US$2.50 to US$3.50 per million British thermal units (MMBtu), while raising the price band for natural gas liquids (NGLs) to US$20 to US$30/bbl, up from US$19 to US$27/bbl.
Moody's Senior Vice-President, Terry Marshall said prices in the upper half of the oil price-band would encourage and increased supply as US production grows and countries reduce compliance to their production quotas.
"Nevertheless, even with crude prices at the higher end of the new US$45 to US$65 range in early 2018, we expect prices to stay within this range over the medium term, amid better balance between increased production and growth in demand," he said.....