• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 2 hours 60 mph electric mopeds
  • 52 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 32 mins US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 6 hours China to Impose Dictatorship on Hong Kong
  • 16 mins Russia loses its chance to capture the EU gas market
  • 21 hours Norway horrified as new rates make EV charging prices higher than petrol
  • 1 hour Why 2030-Isn.t-The-Magic-Year-For-Electric-Vehicles
  • 41 mins Monetary and Fiscal Policies in Times of Large Debt:
  • 41 mins So the President is on that Hydroxy
  • 9 hours Payback Time: Republican Senators turn the tables on Democrats. The difference is the Republican investigations are legit.
  • 12 hours Iran's first oil tanker has arrived near Venezuela
  • 2 hours DEFIANCE – There are More of Us Than Them
  • 21 hours Ventura County to Replace Natural Gas Generation with Battery Storage
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