• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 6 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 15 mins Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 4 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Gazprom Exports to EU Hit Record
  • 38 mins Oil prices going down
  • 1 day EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Why is permian oil "locked in" when refineries abound?
  • 1 day Oil Buyers Club
  • 2 days Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 50 mins Saudi Arabia turns to solar
  • 1 day EVs Could Help Coal Demand
  • 2 days China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 18 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
Serving The 2 Billion Unbanked: A New Trillion Dollar Market

Serving The 2 Billion Unbanked: A New Trillion Dollar Market

Fintech, alongside blockchain, has been…

Oil Demand Growth Could Start To Soften Soon

Oil Demand Growth Could Start To Soften Soon

Non-OECD markets are one of…

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