• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 4 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 2 hours China goes against US natural gas
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 2 days Mike Shellman's musings on "Cartoon of the Week"
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 4 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 21 hours Why hydrogen economics does not work
Alt Text

Turkey Turmoil Drags Oil Down

While Turkey might not be…

Alt Text

Oil Prices Hit 7-Week Low As Trade War Heats Up

Oil prices traded close to…

Alt Text

Saudi Arabia And Iran Reignite The Oil Price War

As U.S. sanctions on Tehran…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Strong Demand Expectations To Lift Oil Prices

oil pipelines

Optimism about crude oil demand in the coming weeks has helped prices to recover somewhat, but the sustainability of the improvement is highly uncertain. Bank of America Merrill Lynch is now forecasting robust gasoline demand in the coming weeks, based on weekly data, which “compares favorably to the five-year average and miles driven also continue to grow year-on-year.”

At the same time, however, another bank slashed its oil price forecast for the short term. French BNP Paribas revised its Brent average forecast for this year by US$9 to US$51 a barrel, seeing WTI at US$49, down US$8 from its earlier forecast. The bank is even more pessimistic about next year.

It expects Brent to average US$48 in 2018, down from an earlier estimate of US$63, and sees WTI at US$45, down from an earlier projection of US$61. The revisions suggest the French lender had high hopes for OPEC’s production cut extension, and now that it has failed to push up prices, there doesn’t seem to be a lot of upward potential coming from anywhere else.

BofA added to the gloom by noting in its optimistic gasoline demand forecast that in absolute terms, peak demand may have come and gone last year, which doesn’t bode well for the longer term. Shale oil production is growing, and so is output in Nigeria and Libya, which, according to analysts quoted by Reuters, will in all likelihood continue to pressure prices.

OPEC may later this month ask Nigeria and Libya to put a cap on their production to help with the price recovery efforts, but it is unclear as of yet whether the two exempt OPEC members will be willing to do so. Earlier statements from Libyan and Nigerian oil officials suggest this may not be the case, although there is always the possibility of better oil revenues from higher prices at current production levels.

By Irina Slav 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