Executive Summary: Oil market outlook
Global oil prices have remained volatile ahead of the UK’s referendum on its EU membership, which will be held on 23 June. The Brent crude front-month futures price has traded in a range of $46.9-52.9 per barrel so far this month, but it has averaged around $50/bbl.
Oil prices are expected to lack a firm direction in the coming months because of conflicting market fundamentals. OPEC refrained from reintroducing a cap on oil output at its June meeting, sending a bearish signal to the market. The cartel is not expected to change its stance this year even if oil prices rise further.