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Oil has reached $50/barrel – now what?: Hansen
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Ole Hansen, head of commodity strategy at Saxo Bank, analyses the rise in Brent crude oil to above $50/barrel – the first time it has traded at that level in the past six months.
The higher price is a result of supply disruption and production reduction, says Hansen, who adds there may now be some breathing space for high-cost producers with greater ability to maintain output.
More supply disruption is taking place in Nigeria, cutting the country’s production to a 20-year low, which Hansen says will support the market in the short term.