• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 1 min Is Eating Meat Worse Than Burning Oil?
  • 2 hours Canada Election Deadlock?
  • 3 hours China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 14 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 23 hours Here's your favourite girl, Tom!
  • 1 day Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 3 mins Diplomatic immunity
  • 2 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 2 hours Devaluing the Yuan
  • 22 hours IMO 2020:
  • 13 hours Nigeria Demands $62B from Oil Majors
  • 1 day Deepwater GOM Project Claims Industry First
  • 12 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
Alt Text

OPEC Chief Hints At Deeper Cuts In December

OPEC Secretary Mohamed Barkindo has…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Premium Content

IMF Predicts $55 Barrel Through 2018

Markets should expect oil to hover around $55 in 2017-2018, according to the International Monetary Fund’s World Economic Outlook, released on Tuesday.

Last year’s average barrel price was $42.84 per barrel, the report said, but this year the average should rise to $55.23. The 2018 price will be slightly lower, at $55.06 a barrel.

“Despite uncertainty about technological improvements and the recent OPEC agreement, rebalancing oil supply in line with demand accompanied by stable prices, will hinge on the prospects for unconventional sources,” the IMF said in the document.

The Organization of Petroleum Exporting Countries (OPEC) agreed to cut output by 1.2 million barrels in late November. The bloc is currently in the process of determining whether or not to extend the cuts, which would contribute to further market rebalancing. Eleven non-OPEC countries also participated in the cuts the first time around, and are expected to participate in the extension.

Regarding new technical capabilities in the oil and gas sector, the international financier said “annual oil demand growth, commonly projected at about 1.2 mbd, will be met by unconventional sources over the next few years, mainly through resources under development for deepwater and ultradeepwater oil, oil sands, and heavy and extra heavy oil.”

The report also acknowledged the effect of rising shale oil production from the United States since oil prices began their recovery this year.

“In the new normal for the oil market, shale oil production will be further stimulated by a moderate price increase,” the report said. “As a result, supply from shale will help somewhat tame the otherwise sharp upward swing in oil prices. Over the medium term, as prices increase further, technical improvements in unconventional oil recovery will be reactivated, which will eventually set off another price cycle.”

By Zainab Calcuttawala 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
Download on the App Store Get it on Google Play