Moody's expects oil prices at $40-$60 in 2018

Moody’s Investors Service on Tuesday said it expects crude oil prices to range between $40 and $60 per barrel in 2018, despite the extension of OPEC-led production cuts until year-end.

In the latest report, the ratings agency said political unrest in the Middle East, along with assumptions that OPEC will extend its agreement to cut production, supported oil prices in late 2017.

"Prices will likely remain range-bound, and possibly volatile, on a combination of increasing US shale production, reduced but still significant global supplies, and potential non-compliance with agreed production cuts — especially if demand growth is more tepid," Moody’s said.

Global demand for oil will continue to grow through 2040, with light vehicle oil demand growth peaking by 2030, it added.