Analysts Revise Oil Price Outlook to 2019
BMI Research announced Thursday that it has revised up its oil price outlook for the next two years.
In a report sent to Rigzone, the research firm revealed that it now forecasts an annual average for Brent crude oil of $75 per barrel for 2018 and $80 per barrel for next year.
“This compares to our previous forecast of $73 per barrel and $78 per barrel, respectively,” oil and gas analysts at BMI Research said in the report.
“The revision is being driven by the supply side, as we factor in the impact of the US’ decision to re-impose secondary sanctions on Iran, renewed global supply outages and shrinking spare capacity,” the analysts added.
“The decision by OPEC+ to begin returning cut barrels to the market and emergent headwinds for demand have prevented a larger hike in the forecast,” the analysts continued.
On the demand side, BMI said its outlook remains “broadly bullish” but warned that risks are rising.
“Global GDP growth has desynchronized, with the Eurozone and Japan disappointing expectations and a number of EMs [emerging markets] showing signs of strain. Several factors signal a more challenging backdrop is forming, including slowing credit growth, a rising dollar and tightening monetary conditions,” BMI analysts said in the report.
“Sweeping subsidy reforms across Latin America, Africa, Asia and the Middle East may also weigh on demand,” the analysts added.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Subsea7 Secures Contract to Service Woodside's Trion
- These Factors Helped Brent Oil Price Break Above $85
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- Gaz System to Acquire Gas Storage Poland
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension