Banks Again Lower Oil-Price Expectations

1 Sep 2017   Prices

Banks have cut their forecasts on oil prices for a fourth consecutive month as their analysts brace for further supply when OPEC’s agreement to cap output ends next year. Members of the Organization of the Petroleum Exporting Countries renewed a deal with 10 other crude-oil producers in May to withhold almost 2% of global oil supply. The accord is set to expire in March 2018 and concerns are mounting among investors and others as that date approaches. A poll of 14 investment banks, surveyed by The Wall Street Journal at the end of August, predicted that Brent crude, the international benchmark, will average $54 a barrel next year, down $1 from the July survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $51 a barrel in 2018, down $2 from the previous survey. The survey was conducted before tropical storm Harvey crippled refineries on the […]

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