The International Energy Agency has observed that crude oil price may have already passed its lowest levels. According to the institution, it is in course to reach the stabilizing higher levels.
In the last couple of weeks, oil is returning from its lowest levels of $28 per barrel to $40. Both major global varieties- WTI and Brent are showing the uptrend.
Observers also highlight that oil’s return to the 40s or 50s will be led by production agreement by the producers. Last month, major producers Russia and Saudi Arabia have reached an agreement for keeping the production stable at January 2016 levels.
Despite adequate information about production trends, agencies are not able to predict the correct path of oil even if for the next few months. Ace forecaster Goldman and Sach has predicted that price may come down than its previous estimates.
Oil’s journey has big implication on exporting countries like Russia, Saudi Arabia etc that depends heavily on crude revenues. Similarly, major importers of commodities like India may feel their golden days have gone once the price starts rising.