Deloitte report forecasts oil prices to rise modestly over next three months

A report by Deloitte Canada forecasts crude oil prices will increase modestly over the next three months.

The report by the firm's resource evaluation and advisory group says lower supply will begin to drain global crude inventories.

Production cuts, including Saudi Arabia's recent announcement of an additional cut of one million barrels a day, should help to prop up prices despite weaker demand, the report says.

Deloitte also says that seasonally high natural gas storage levels in Europe combined with lower demand due to warmer than expected winter weather, have pushed down natural gas prices and reduced demand for liquid natural gas imports.