• 10 mins Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 4 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 5 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 7 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 1 day Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 1 day Gazprom Speaks Out Against OPEC Production Cut Extension
  • 1 day Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 1 day Whitefish Energy Suspends Work In Puerto Rico
  • 1 day U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 7 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
Alt Text

Is OPEC Deal Compliance About To Crash?

OPEC’s victory lap to celebrate…

Alt Text

The IEA Is Grossly Overestimating Shale Growth

The IEA’s forecast that U.S.…

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

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


Leave a comment

Leave a comment




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