• 6 hours Surprise! Aramco Scraps International Listing Plans
  • 10 hours Did U.S. just start war with China? $60 Billion tariff package coming fast
  • 2 hours McDonald's Sets Greenhouse Gas Reduction Targets
  • 4 hours API Inventory Data (Tuesdays)
  • 10 hours Goldman Sachs Expects Tesla to Miss Model 3 Targets Again
  • 6 hours The Facebook/Cambridge Analytica Scandal
  • 7 hours Trump Bans Venezuelan National Cryptocurrency
  • 6 hours Self-Driving Cars' First Fatality
  • 9 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 8 hours Why do Driller stocks move with the daily price of oil?
  • 6 hours Why Is The EU Spending Billions On A Gas Pipeline If It Wants To Fight Climate Change?
  • 2 hours Why Are Investors Ignoring China's Oil Giant?
  • 4 hours G20 Rejects Calls for Cryptocurrency Regulation
  • 5 hours New Rules to Phase Out Coal and Reduce Natural Gas in Canada
  • 7 days Terminator plans to sue big oil for 'first degree murder'
  • 10 mins Statoil Changes Name
Alt Text

Saudis Raise Crude Oil Prices To Asia

Solid demand and a stronger…

Alt Text

Are Traders Overlooking The Real Oil Price Influencer?

Oil prices have climbed significantly…

Alt Text

Saudi Arabia Wants $70 Oil

The OPEC production cut has…

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

Experts Remain Bearish On Brent – See $45 Oil Throughout 2016

Drilling rig Apache

Economists and analysts have kept their average Brent price outlook for 2016 almost unchanged at US$44.78 per barrel, as growing hurdles to a global deal on production limits put downside pressure on crude oil prices, according to a Reuters poll out on Monday.

A total of 35 economists and analysts surveyed by Reuters reckon that the Brent prices would average US$57.08 next year. U.S. light crude CLc1 is expected to average US$43.46 this year and US$55.22 next year.

So far this year, Brent has averaged US$43.93 and WTI has averaged US$42.31.

At the time of writing, WTI Crude traded down 0.53 percent at US$48.44, while the Brent Crude was down 0.49 percent at US$50.43.

In the previous Reuters poll - when OPEC producers had just agreed to work toward a deal to cut their total crude production at between 32.5 million bpd and 33 million bpd – analysts had their doubts that the cartel would pull off a real deal.

Back then the experts cut their estimates for the Brent LCOc1 price to US$44.74 from the US$45.44 price outlook in August—the second outlook reduction in a row following five consecutive upward revisions. The 2017 forecast for the Brent price was then reduced to US$57.28 from US$57.90.

In today’s Reuters poll, a possible failure of an OPEC deal is not the only downside risk to higher oil prices. Economists also see a possible Fed rate hike, a slowdown in Chinese growth, and less tension in Nigeria and Libya as potential hurdles in seeing substantial oil price increases.

If OPEC fails to reach a deal, a sell-off could result in oil prices plunging to US$40, and the supply glut could linger until at least the second half next year, analysts polled by Reuters say.

This weekend’s OPEC-only and OPEC-non-OPEC meetings in Vienna did not result in any substantial preliminary decision ahead of the November 30 OPEC summit, at which production limits are expected to be discussed in detail.

Heading into the weekend meeting, OPEC members were divided, with two of the heavyweights, Iran and Iraq, disputing OPEC data on output. A week before that Iraq put further pressure on the chances of a possible deal, saying that it should be exempt from production cuts because of the war it is fighting against ISIS.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Back to homepage

Trending Discussions

Leave a comment
  • Ness on October 31 2016 said:
    Eventually the market will wake up and so uh oh what just happened. The entire oil industry is broke and US shale can't save us FYI shale players on now making return on gross investment that investors demand either and just take a look at land costs to see how costs are starting to escalate once again. GE and BH dont have to work for nothing anymore and more consolidation will happen on the service side driving costs up for O £ G players Exxon increased borrowings by 13 billion just to pay dividends. Venezuela will collapse.
    All the so called experts are lulling everyone into a false sense of security

Leave a comment

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