Moody’s Investors Service raised on Tuesday its price band for crude oil in the medium term to $45-$65 per barrel from $40-$60 a barrel, as continued OPEC cuts and strong global demand growth help excess global inventories to decline. Still, the rating agency noted that oil prices will likely stay range-bound and possibly volatile as the surge in U.S. shale production will continue to suppress price gains whenever prices rise in the upper half of the $45-$65 price band. “Prices in the upper half of the oil price-band will encourage increased supply as US production grows and countries reduce compliance with their production quotas,” Terry Marshall, a Moody’s Senior Vice President, said. “Nevertheless, even with crude prices at the higher end of the new $45-$65 range in early 2018, we expect prices to stay within this range over the medium term amid better balance between increased production and growth […]