Credit ratings major Moody's raised its medium-term price band for crude oil between $45 and $ 65 per barrel, taking into account prolonged production cuts by major oil producing countries and demand growth that have contributed to declining global inventories.

The ratings' firm raised the price band from its earlier estimates of $40 to $60 per barrel, arguing that the production cuts and the demand growth are being offset by the rapid increases in US shale production.

The change in the market conditions has resulted in benchmark prices

to be averaged around $65/bbl this year. The firm further expects the price increase to be limited as the additional supply from the shale production and other non-OPEC production limits price growth.

First Published:Mar 14, 2018 7:39 AM IST