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The crude oil market outlook is worsening due to stagnation in global demand as a result of trade strain and increased supply of raw materials. However, some of the world’s largest energy investors are convinced that prices will return to record high levels. In addition, world-wide interest rates are rising and the US dollar is rising, which means that the cost of oil buyers from emerging market economies will grow.

OPEC and the International Energy Agency (IEA) have warned of the dangers of trade disputes over global demand growth.

Large hedge funds such as Andurand Capital and Westbeck Capital forecast a rise in oil prices to 150 USD per barrel because of the US sanctions against Iran from the current levels of 75 USD per barrel at the moment. Currently, the restrictions do not include the oil sector, but it will be sanctioned on November 4th.

According to forecasts of hedge funds, the yield will decrease by between 1.3 and 1.4 million barrels per day, which represents a significant drop.

In June, the US President Donald Trump accused OPEC for the 45% increase in oil prices over the past 12 months.

On Monday, the Organization of Petroleum Exporting Countries (OPEC) published its forecast for a lower demand for crude oil in the coming year, as rivals increase yields. The leading exporter of crude oil, Saudi Arabia, who wants to avoid re-oversupply, has reduced the yield.

In its monthly report, OPEC said the world would need 32.05 million barrels of crude oil per day from its 15 member states in 2019, down by 130,000 barrels per day from the forecast made last month.