• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 14 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 8 hours Will Uncle Sam Step Up and Cut Production
  • 1 day Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 9 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 12 hours Continental Resource's Hamm (Trump Buddy) wants shale to cut production.Can't compete with peers. Stock will drop in half again.
  • 1 hour Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 49 mins Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 5 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 2 days Kremlin Says WTO's Existence Would Be In Doubt If the U.S., Others Left
  • 2 days I think I might be wrong about a 2020 shakeout
  • 2 days China Continued Iran Oil Imports In July In Teeth of U.S. Sanctions
  • 2 days Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
Alt Text

Oil Trapped In Narrow Price Band

Oil prices appear to be…

Alt Text

Oil Crashes On New Trade War Escalation

Oil prices opened the week…

Alt Text

Oil Rises As Market Awaits Saudi Move Counter Glut

Despite another gloomy demand forecast…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Strong Demand Expectations To Lift Oil Prices

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:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play