Global oil prices are expected to remain volatile for the rest of the year according to a new report from the Economist Intelligence Unit (EIU).

The report suggests that factors such as increased geopolitical risk in the Middle East and rising US shale production will move the market in unpredictable directions.

Oil production cuts announced by The Organisation of the Petroleum Exporting Countries (OPEC) are set to continue until the end of March 2018. However, a number of countries, exceeded oil and gas production limits in June which has led to an average compliance rate of 78%. The rate between January and May was 96%, raising concerns across the industry.

EIC says that if other nations fail to reach the compliance rates OPEC have recommended, this could have a major effect on oil prices across the economy, leading to an extremely volatile market.

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