Higher Brent crude on recovering fundamentals

Opec move to raise oil production seen as a sign of stability

PETALING JAYA: Brent crude, the global oil benchmark, is expected to hover around US$45 per barrel by year-end and at a higher price of US$50 next year amid weak but recovering fundamentals.

The Organisation of the Petroleum Exporting Countries (Opec) and its partners, collectively known as Opec+, is set to raise oil production by 500,000 barrels per day (bpd) starting next month. This will effectively reduce production cuts to 7.2 million bpd from 7.7 million currently, and also superseding earlier agreements of raising it by 2 million bpd.