• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 8 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 17 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 3 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 4 hours Saudi Fund Wants to Take Tesla Private?
  • 13 hours Starvation, horror in Venezuela
  • 22 hours Venezuela set to raise gasoline prices to international levels.
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 16 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August

Barclays Bearish On Oil Prices In 2018

London

Unplanned temporary outages such as the Forties Pipeline shutdown are currently supporting oil prices, but as we go into 2018 a lot of those temporary issues will go away and supply is going to exceed demand again and inventories will build, Michael Cohen, Head of Energy Markets Research at Barclays, told CNBC’s Squawk Box on Wednesday.

Barclays expects WTI oil prices to revert to the mid-$50s by the summer of next year, Cohen said. Moving to the end of 2018, oil prices in Q4 will be higher, according to the Barclays expert.

At 12:48 pm EST on Wednesday, WTI Crude was up 0.64 percent at $57.93.

Still, the issue in the oil market next year will be that U.S. oil production continues to move higher, and EIA and Barclays forecasts continue to expect about 1 million bpd to1.2 million bpd of more liquids supply out of the US next year, Cohen told Squawk Box. 

Asked about another main player on the global oil market, Saudi Arabia, Cohen said that Barclays continues to believe that the initial public offering (IPO) of Saudi oil giant Aramco—slated for the second half of 2018—would be delayed and would not take place next year.

Related: Houthi Missile Targeting Riyadh Palace Intercepted

The listing, the location, the political backdrop in Saudi Arabia, and the issues between Saudi Arabia and Iran could lead to the Saudis waiting for the IPO, Cohen said.

“I would argue that they want price stability over a certain price level,” Cohen noted, referring to Saudi Arabia’s targeting a certain range of oil prices.

As regards the Saudi ability to influence oil prices, Cohen said that “clearly they are in the driver’s seat of this OPEC/non-OPEC policy, they have some control, but at the end of the day, the market looks at the balance, and the market is seeing something that’s going to be in surplus.”  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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