[OIL IMPACT] Oil prices to continue downward fall this year: analyst

[THE INVESTOR] Global oil prices may continue to slide in the second half of this year as crude entered a bearish phase again amid continuing oversupply worries, a South Korean brokerage firm NH Investment & Securities said on Aug. 3.

“Oil prices are expected to move down in the short term through the end of 2016 but not below $35 a barrel,” said Ku Ja-won, an analyst at NH Investment & Securities.

Crude oil futures settled below US$40 a barrel on Aug. 2 for the first time since April.

The New York futures contract for September delivery settled at $39.51 US a barrel, down 55 cents from close on Aug. 1.

That price also represents a tumble of more than 20 percent from its recent peak above US$50 a barrel in June.

Some 20 analysts surveyed by Bloomberg said that global oil prices will rebound to an average of $57 a barrel in 2017, but with slow progress.

“WTI will average $49.50 in the fourth quarter before breaking decisively above $50 next year,” Michael Hsueh, a strategist at Deutsche Bank was quoted as saying by Bloomberg.

By Park Han-na (hnpark@heraldcorp.com)