Trafigura sees oil slide near US$50

SINGAPORE: Brent crude could slump toward a level it hasn’t seen since December 2018 prompting deeper output cuts from the Organisation of the Petroleum Exporting Countries (Opec) and its allies, according to one of world’s biggest oil traders.

Macroeconomic headwinds and rising supply will chart a course toward US$50 a barrel for the global benchmark over the next six months, which is about 20% lower than where it’s currently, Ben Luckock, Trafigura Beheer BV’s co-head of global oil trading, said during an interview in Singapore. It’s likely to return to a range of US$70 to US$75 in the medium to long-term, a level cheap enough for consumers but valuable enough to make producers money, he said.