LONDON: The plunge in oil prices is double–edged as miners benefit from reduced production costs in the short term, but on the other front it has an impact on the value of the commodity produced.
Brent crude oil has slumped to below $55 per barrel from $116 per barrel in the past six months and Standard Bank’s global head of mining and metals Rajat Kohli expects another tough year for the commodity.
Further the bank noted in its forecast that Brent crude oil will rise to $70 per barrel in 2015 and remain flat up to 2018.
