Expect crude to hit $60 barrel in H2FY17: Energy Aspects

Global factors like US Federal Reserve’s stance on rates and uncertainty around Brexit have given a leg up to commodities, according to experts. In the short term, the impact of Brexit will weigh on crude oil prices but they won't go up significantly, said Richard Mallinson, Geopolitical Analyst, Energy Aspects. He added that he expects the rally to continue in the third and fourth quarters with crude hitting USD 60-per-barrel mark. Mallinson said the biggest downside risk to commodities are in macro-economic contagion such as loss of confidence in Eurpoean economies. If that happens commodities class will be under pressure, he added. Meanwhile, the markets have seen the best quarter for gold and silver in the past three decades on the back of dovish comments from Fed chair Janet Yellen, said Davi Wilson, Director of Metal Research & Strategy, Citi. Significant softening of dollar, change in attitude of US Federal Reserve and uncertainty over Brexit have given gold a leg up, he added.