Crude Oil Prices Could Fall to $60 as Global Supply Increases

Oil prices could fall to $60 per barrel in the coming days, according to Sujan Hajra, Executive Director and Chief Economist at Anand Rathi Financial Services.

The current Brent crude price is near $91.16 per barrel and WTI around $84.92, driven mainly by concerns over Middle East supplies and heightened geopolitical risks.

Hajra pointed out that there is considerable latent supply in the global oil system, with Gulf producers like Saudi Arabia, Iraq, and Kuwait having substantial capacity to return to the market.

A normalization of geopolitical conditions could also release supply presently constrained in countries such as Iran and Russia, leading to a drop in oil prices.