• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 16 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 2 mins Adsorbent natural gas tanks are revolutionary.
  • 51 mins Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 9 hours Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 3 hours Theresa May to Step Down
  • 3 hours Total nonsense in climate debate
  • 1 hour IMO2020 To scrub or not to scrub
  • 10 hours Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 2 hours IMO 2020 could create fierce competition for scarce water resources
  • 23 hours Will Canada drop Liberals, vote in Conservatives?
  • 23 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 23 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 15 hours Australian Voters Reject 'Climate Change' Politicians
  • 6 hours Why is Strait of Hormuz the World's Most Important Oil Artery
Alt Text

Bank Of America: $90 Brent May Be Around Corner

Bank of America Merill Lynch…

Alt Text

Oil Tanks On Worst Day In Six Months

Oil prices plummeted on Thursday,…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Major Banks Growing More Bearish On Oil Prices

The renewed downturn in oil prices has forced major banks to slash their price forecasts for 2017 as a new bear market induces heightened pessimism.

The Wall Street Journal surveyed 13 investment banks on their predictions for Brent prices, and the average result was $56 per barrel for 2017, which was about $1 per barrel lower than the survey the WSJ conducted in June. The investment banks also don’t see oil prices bouncing back to $50 per barrel until the end of this year, which is a dramatic change from last year’s expectation that oil would hit $70 in 2016.

“There is still a lot of oil out there and the sentiment is pretty bearish,” Michael Wittner, chief oil analyst at Société Générale SA, told the WSJ. “For the time being, the path of least resistance for oil prices continues to be lower.”

On Wednesday, the EIA provided another mixed picture for the oil markets in its weekly data release, showing a surprise build up in crude oil inventories by 1.4 million barrels. But that was offset by a drawdown in gasoline stocks, which fell by a relatively strong 3.3 million barrels. The markets seemed to put more emphasis on the gasoline figures rather than the crude stock build, and oil prices bounced on the news, pushing WTI back above $40.

The data halted, if only temporarily, a more than month-long downturn in oil prices, which fell from over $50 per barrel in June. But there is no guarantee that the price slide will reverse. In early trading on Thursday, WTI and Brent were back down. "Maybe the surprise drawdown in gasoline inventories helped future prices remain stable but that does not change the fact: the U.S. is flooded with oil," Tamas Varga, lead oil analyst PVM Oil Associates, told Reuters.

Meanwhile, the Bank of England cut interest rates to 0.25 percent, the lowest rate on record in its 322-year history. It also announced monetary stimulus measures, a 60-billion-pound asset purchase program intended to blunt the effects of the UK’s decision to exit the EU. The British pound sank more than 1 percent on the news. Along with the monetary expansion in Japan, the dollar is seeing relative strength, which is bearish for crude oil.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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