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Oil at $85 will prove unsustainable

The price of Brent crude nudged $85 per barrel today, reflecting concerns about the re-imposition of US sanctions on Iran. However, we remain of the view that supply from other OPEC and non-OPEC producers will offset lower Iranian output. This is particularly the case as there are now clear signs that demand is slowing, which underpins our forecast that prices will fall to $60 by end-2019.

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