• 4 minutes China - EU: Xi Says Cooperation Is Mainstream In Their Ties
  • 8 minutes The Mining Industry Has Had It Easy For Far Too Long
  • 11 minutes Lawsuit-Happy Councilor Wants to Take Big Oil to Court
  • 15 minutes U.S. Shale Output may Start Dropping Next Year
  • 2 hours Dutch Populists Shock the EU with Election Victory
  • 2 mins Trump to Make Allies Pay More to Host US Bases
  • 17 hours Venezuela Says Russian Troops Land to Service Military Equipment
  • 7 hours Multi-well Pad Drilling Cost Question
  • 18 hours U.S.-China Trade War Poses Biggest Risk To Global Stability
  • 47 mins Public Companies that attended OPEC "THREAT DINNER" at CERRAWEEK must disclose any risks in their SEC Financial filings.
  • 2 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 53 mins England Running Out of Water?
  • 20 mins Read: OPEC THREATENED TO KILL US SHALE
  • 6 mins Mexico Demands Spain and the Vatican Apologize to Indigenous People for the Spanish Conquest
  • 1 day One Last Warning For The U.S. Shale Patch
  • 1 day European Parliament demands Nord-Stream-ii pipeline to be Stopped
  • 2 days Climate change's fingerprints are on U.S. Midwest floods
Alt Text

Oil Price Rally Hits Resistance

Oil prices are holding their…

Alt Text

World’s 2nd Largest Oil Company Sees Huge Drop In Profit

China’s Sinopec, the world’s second…

Alt Text

Why OPEC’s Decision To Delay Makes Sense

OPEC’s decision to maintain the…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Analysts Raise Average WTI Forecast To $58 In 2018

For yet another month, analysts raised their average forecasts for oil prices this year—expecting WTI Crude to average $58.11 a barrel—but warned that Brent Crude is unlikely to rise much higher than $70, as growing U.S. shale production will offset a large part of OPEC’s production cuts.

According to the monthly Reuters poll of 34 analysts and economists on Wednesday, WTI is expected to average $58.11 per barrel this year, up from the $55.78 forecast in the December poll.

So far this year, WTI has beat the expectations, averaging $63.63 a barrel.

The experts polled by Reuters also increased their forecast for Brent Crude and now expect it to average $62.37 per barrel this year, up from the $59.88 projection from last month’s poll.

So far this year, Brent has averaged $69 a barrel, and is set to close a fifth consecutive monthly gain.

At 07:00 a.m. EST on Wednesday, WTI Crude was down 0.53 percent at $64.16, while Brent Crude traded down 0.50 percent at $68.18. Investors will be expecting EIA’s inventory data at 10.30 a.m. EST to give direction on the U.S. benchmark. Yesterday, the American Petroleum Institute (API) reported a moderate build of 3.229 million barrels of United States crude oil inventories for the week ending January 23. Related: Are Oilfield Services A Buy?

While both benchmarks are currently above the expected average for the year, analysts polled by Reuters don’t expect the oil price gains to continue beyond the first quarter of the year, due to the expected surge in U.S. shale production that will likely offset a good portion the cuts that OPEC and its non-OPEC allies led by Russia have been implementing for more than a year now.

But factors like robust oil demand growth, lurking geopolitical risk, and the commitment of OPEC’s leader Saudi Arabia to curb production, could at least help to keep a floor under oil prices, Cailin Birch, analyst at the Economist Intelligence Unit, told Reuters.

“However, we expect strong production growth from the U.S., as well as some opportunistic selling by both OPEC and non-OPEC members later in the year, to prevent prices from rising much higher than $70 per barrel on average,” Birch noted.

While analysts say that it is too early to predict if OPEC and friends will change the terms of their pact before the end of 2018, some believe that it is unlikely that the production cut deal will be extended as-is beyond 2018.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News