• 4 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 9 minutes Time For Reaction: Trump Presses OPEC to Reduce Prices as Crude Trades Near $80
  • 15 minutes Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
  • 24 mins Global Hunger Continues to Grow Driven By Climate Change
  • 1 min Why Are the Maldives Still above Sea Level?
  • 3 hours So oil touched $80! (WTI break $71 twice). What does the future hold?
  • 6 hours Toyota Agreed To Add Android Auto To Its Vehicles
  • 1 day A Buffett-type Solution and Canada's Problem
  • 22 hours Robots Roam the Seafloor Looking for Mineral Resources
  • 21 hours Transition Time: Volkswagen Announces "Electric for All" Campaign
  • 1 day So about that psychological oil price ceiling of $80 ... Trump's Twitter sledgehammer is right on cue, again
  • 12 hours Freedom Of Internet: Google Plans Censored Version Of Search Engine In China!
  • 9 hours China Tariff Threatens U.S. LNG Boom
  • 29 mins Jan's Electric bike replaces electric cars
  • 2 days Google And Facebook Lead Digital's March To Half Of The U.S. Ad Market
  • 9 hours Praise for Alberta
  • 19 hours Impeachment and stock market
Alt Text

OPEC Outages Are Driving Up Oil Prices

Geopolitics is once again playing…

Alt Text

IEA: Tight Markets To Push Oil Prices Above $80

IEA’s latest monthly oil report…

Alt Text

Why WTI Could Crash In The Coming Weeks

Refinery maintenance season is quickly…

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

Oil Prices Rise On Brighter Global Economic Prospects, OPEC Cuts

offshore rig

Oil prices were up early on Tuesday, supported by a brighter outlook on the global economy for this year and next, as well as the continued high compliance of OPEC and allies with their joint oil production cuts.

At 07:10 a.m. EST on Tuesday, WTI Crude was up 0.27 percent at $63.74, while Brent Crude was trading up 0.29 percent at $69.23.

In its World Economic Outlook Update, the International Monetary Fund (IMF) revised up on Monday its projections for global growth by 0.2 percentage point to 3.9 percent for 2018 and 2019, reflecting increased global growth momentum and the expected impact of the U.S. tax policy overhaul. Last year, global economic activity continued to firm up, and global growth is forecast to have been 3.7 percent, up 0.1 percentage point compared to the previous outlook. Notable upside surprises in European and Asian economies further strengthened the overall global economy, the IMF said.

“Some 120 economies, accounting for three quarters of world GDP, have seen a pickup in growth in year-on-year terms in 2017, the broadest synchronized global growth upsurge since 2010,” the IMF said, noting that improving global growth outlook was one of the main reasons for the higher oil prices at the end of last year and early this year. Related: Will This Cause An Oil Price Reversal?

While global economic growth and expectations of robust global oil demand growth are pushing oil prices higher on the demand side, from the supply side, OPEC and its non-OPEC allies led by Russia continue to tighten the market by restricting oil production. Over the weekend, the Saudi and Russian energy ministers reiterated their commitment to the cuts, and Saudi Arabia’s Khalid al-Falih went further, suggesting that the cartel and its non-OPEC partners need to be talking about a longer framework for that cooperation.

“The outlook for 2018 is roughly balanced for most of the year, but inventories are set to rise in Q4 2018,” BNP Paribas told Reuters, commenting on the global oil inventories picture for this year.

The French bank raised its oil price forecasts for this year by $10, and now sees WTI averaging $60, with Brent averaging $65 in 2018.

Barclays, for its part, revised up its Brent forecast too, by $5 to $60, citing strong oil demand growth and crumbling production from Venezuela.

The possible headwinds to a further increase in oil prices include rising U.S. oil production, weakening refining margins across the world that could slacken refinery purchases, and money managers’ very crowded record net long position in the most important futures and options linked to crude oil.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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