• 4 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 9 minutes Time For Reaction: Trump Presses OPEC to Reduce Prices as Crude Trades Near $80
  • 15 minutes Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
  • 1 hour So oil touched $80! (WTI break $71 twice). What does the future hold?
  • 9 mins Global Hunger Continues to Grow Driven By Climate Change
  • 6 hours Why Are the Maldives Still above Sea Level?
  • 1 hour Praise for Alberta
  • 6 hours China Tariff Threatens U.S. LNG Boom
  • 22 mins Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 5 hours Freedom Of Internet: Google Plans Censored Version Of Search Engine In China!
  • 1 day Robots Roam the Seafloor Looking for Mineral Resources
  • 1 day Transition Time: Volkswagen Announces "Electric for All" Campaign
  • 4 hours Lack of Global Warming Messes with Russian Arctic LNG Plans
  • 18 hours Toyota Agreed To Add Android Auto To Its Vehicles
  • 1 day Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 2 days So about that psychological oil price ceiling of $80 ... Trump's Twitter sledgehammer is right on cue, again
  • 12 hours Jan's Electric bike replaces electric cars
Alt Text

Why Peak Oil Demand Doesn’t Matter

A new report predicts that…

Alt Text

Investors Back Brent To Break $80

After a few weeks of…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Barclays: WTI To Average $65 Next Year

rigs

Barclays raised on Tuesday its oil price forecasts for Brent Crude and WTI Crude for 2018 and 2019, and sees the U.S. benchmark averaging $65 a barrel next year, as it expects lower supply from Iran and Libya to further tighten the oil market.

“Due to new outages and a quicker Iran supply reduction, we see Brent and WTI prices averaging $71 per barrel and $65 per barrel next year,” said Barclays, as carried by Reuters.

The British bank’s previous forecast for Brent was an average $65 a barrel in 2019. For the second half of this year, Barclays now sees Brent Crude averaging $73 per barrel, up from a previous projection of $70.

According to the bank, OPEC and Russia’s decision to reverse some of the production cuts would deplete the global spare capacity cushion and push prices up, but OPEC’s leader Saudi Arabia, as well as Russia, would be making efforts to cap a big upside in oil prices because much higher prices would destroy oil demand growth.

“Indeed, OPEC’s decision and disruptions elsewhere will deplete the market’s spare capacity cushion, raising prices,” Barclays’ analysts said, but warned that “As prices rise to higher levels, the air is growing thin and oil demand is already faltering.”

In the middle of April, Barclays expected oil prices to collapse in the second half of this year, as it saw a new supply surplus looming because of an “overstated” impact of Iran and Venezuela on the oil market. Related: Asia Is Leading The Renewable Energy Race

A lot of things have changed since mid-April, however. The U.S. slapped sanctions on Iran and is looking to cut off as many Iranian oil exports as possible. Venezuela’s production continues to plunge every month, while renewed civil strife in Libya chokes its oil production as oil export ports are closed. In addition, an outage at Syncrude in Canada’s oil sands is depleting stockpiles at Cushing, Oklahoma. It is expected that Syncrude will ramp up to full production in early to mid-September, one of the operators of the project, Suncor, said on Monday.

Also due to the Syncrude outage, the WTI discount to Brent has narrowed in recent weeks to $4-5 a barrel, but Barclays expects that it could widen in the fourth quarter 2018 again, to around $7.50.

At 12:39 p.m. EDT on Tuesday, WTI Crude was up 0.09 percent at $73.92, and Brent Crude was up 0.88 percent at $78.76.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Kr55 on July 10 2018 said:
    Woah woah Barclays, calm down you crazy people. Such a courageous prediction.

Leave a comment




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