Jan 2 (Reuters) - Moody's Investors Service said on Tuesday it expects oil prices in the range of $40 to $60 per barrel in 2018, with abundant supplies of U.S. natural gas constraining prices, even while demand goes up.

"Prices will likely remain range-bound, and possibly volatile, on a combination of increasing U.S. shale production, reduced but still significant global supplies, and potential non-compliance with agreed production cuts - especially if demand growth is more tepid," Moody's said. http://bit.ly/2lANvg3

Oil price rise in late 2017 was supported by assumptions of OPEC extending its agreement to cut production and "political unrest" in the middle east, Moody's said.