• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 53 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 17 mins Evergrande is going Belly Up.
  • 3 hours World’s Biggest Battery In California Overheats, Shuts Down
  • 1 day U.S. Presidential Elections Status - Electoral Votes
  • 15 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 18 hours Poland Expands LNG Powered Trucking and Fueling Stations
  • 2 days And now, hybrid electric locomotives...
  • 1 day Ozone layer destruction driving global warming
  • 2 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 2 days The Painful Death of Coal
  • 23 hours The coming Cyber Attack
  • 24 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 1 day 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
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




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News