Oil price growth reflects expectations of US output decline

The modest upward correction in oil prices reflects expectations of a continued decline in oil production in the United States, the European Bank for Reconstruction and Development (EBRD) said in its Regional Economic Prospects report.
Producers in the US need prices of around $60-$65 per barrel to maintain sufficient profitability and justify the investment costs, as well as the apparent willingness of Saudi Arabia to participate in a coordinated oil production freeze or production cuts, according to the report.
The projections assume a continued but low upward movement of prices of oil and other commodities, said EBRD.