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This article first appeared in The Edge Financial Daily on October 2, 2018

KUALA LUMPUR: S&P Global Ratings has revised up its 2019 Brent crude oil price forecast to US$70 (RM289.80) a barrel, from an initial forecast of US$65 a barrel, on supply concerns.

Its corporate ratings director for Asia-Pacific Bertrand Jabouley said while supply concerns have pushed Brent crude oil price above US$80 a barrel, price of the commodity is unlikely to hold firm at that level.

Jabouley said at current price, oil producers will start to pump up their production capacity and flood the market with the commodity.

“We will revise and review [our forecast from time to time],” he said at a press briefing here yesterday.

“Looking from the Brent crude futures curve, it remains to be on a downward trend, not to mention traders and oil professionals are a little bit sceptical about the ability of oil prices to hold firm,” Jabouley added.

Brent oil price climbed to a four-year high ahead of US sanctions against major producer Iran. Reuters reported Brent crude oil price rose to its highest since November 2014 yesterday, ahead of the US sanctions against Iran, the third-largest producer in Opec, which kick in next month.

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