Waning OPEC Compliance Threatens Oil Price Rally

1 Aug 2017   OPEC

Analysts cut yet again—for a sixth consecutive month—their oil price forecasts for 2017 and 2018, as the slower-than-expected rate of oil market rebalancing puts an increasing amount of pressure on OPEC’s resolve to stick with the cuts, according to 33 economists and analysts surveyed in the July Reuters poll . According to the survey, Brent crude prices are seen averaging US$52.45 per barrel this year, lower than the US$53.96 forecast in the June poll . For WTI, the experts now expect the price to average US$50.08 in 2017, compared to US$51.92 in the June poll. Analysts and economists also cut their 2018 price projections, with Brent seen averaging US$54.51 next year, down from US$57.37 in the previous poll. WTI price is expected to average US$51.88 next year, a significant downward revision from the US$55.20 predicted in June. Earlier this month, the International Energy Agency (IEA) said that the rebalancing […]

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