Oil prices hit their highest levels for 2015 on Friday (February 13) with US crude settling at $52.78 and Brent crude rising above $60 a barrel. Better European macro data and a drop in US oil rig drilling count pushed up oil, which has been trending positively over the last three weeks, with prices for Brent rebounding by more than 30 percent from their $45 levels seen in January. This has set off guesswork among forecasters on whether it is time to call it a bottom on oil, and whether we could see a further rebound in prices. In a recent note, Qatar National Bank (QNB) says: “The evidence suggests that these fundamental changes are likely to affect prices only over the medium term. While technical factors in financial markets explain the recent rebound, these technical factors are likely to be temporary. We, therefore, do not expect a significant further recovery in 2015.” The fundamental supply adjustments currently taking place will, however, result in a gradual recovery in oil prices in 2016 and 2017, believes QNB. The bank estimates that prices will recover to $64 per barrel in 2016 and $69 per barrel in 2017 as investment cutbacks, which have led to lower operational drilling rigs in the US, add some upward pressure on prices, clearing the supply glut. – See more at: http://trendsmena.com/economy/oil-early-call-bottom#sthash.Z6EkG1H2.dpuf

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