• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 1 day Permian in for Prosperous and Bright Future
  • 7 hours Daniel Yergin Book is a Reality Check on Energy
  • 1 day YPF to redeploy rigs in Vaca Muerta on export potential
  • 1 day Gepthermal fracking: how to confuse a greenie
  • 13 hours Famine, Economic Collapse of China on the Horizon?
  • 13 hours Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 2 days US after 4 more years of Trump?
  • 1 day Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 2 days The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 7 hours Open letter from Politico about US-russian relations
  • 3 days Surviving without coal is a challenge!!
  • 3 days Portuguese government confirms world record solar price of $0.01316/kWh
The Real Reason The Oil Rally Has Fizzled Out

The Real Reason The Oil Rally Has Fizzled Out

Oil has definitely plateaued in…

Do Oil Market Fundamentals Justify $40 WTI?

Do Oil Market Fundamentals Justify $40 WTI?

Oil prices have been trading…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Barclays Expects Higher Oil Prices But Slow Recovery

Barclays raised its oil price forecast for crude oil by $4 a barrel but noted that the price improvements will be slow.

Reuters reports the bank now expects Brent crude to average $41 a barrel this year, with West Texas Intermediate seen at $37 a barrel. Yet in the third quarter, Barclays expects Brent crude to trade at an average of $37 a barrel and WTI at $34 a barrel.

Right now, both benchmarks are trading below $40 a barrel, with Brent at $37.68 a barrel at the time of writing and WTI at $35.43 a barrel. They are both set for their first weekly decline after a tentative but extended rally. The rally, however, was not strong enough to sustain initial optimism following reports from OPEC+ balance would soon return to oil markets.

Meanwhile, another bank has warned the price rally would fizzle out soon. Earlier this month, Morgan Stanley said the price rise from recent week “appears mostly supply- rather than demand-driven, and it is questionable how strong refinery runs can increase against this backdrop.”

Despite the continuous market-fixing efforts in supply by the OPEC+ group, the world’s consumption of oil is unlikely to return to the levels before the coronavirus pandemic until late next year, according to the bank.

Other concerns about an oil price correction include U.S. shale restarting too much production as prices rise, as well as a sharp rise in oil production when OPEC and allies start unwinding the cuts, Morgan Stanley says.

Goldman Sachs is also guarded in its forecasts. In fact, the investment bank is rather bearish on oil right now. Citing uncertainty around oil demand recovery, Goldman said last week it expected Brent crude to soon slip down to $35 a barrel as expectations about a quick rebound in demand for oil turned out to have been overoptimistic.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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