• 21 mins ConocoPhillips Sets Price Ceiling For New Projects
  • 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 7 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 7 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 10 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 10 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

European Commission Lowers Brent Forecast To $55.50

Oil

The European Commission lowered its forecast for Brent barrel prices to $55.50 by the end of this year, according to the group’s Spring 2017 Economic Forecast.

An earlier edition of the report predicted prices to reach $56.40 at the end of December. The new revisions follow a week of tumbling oil prices as Libya and Nigeria report record outputs after years and months of domestic strife, respectively.

The report also tied increases in inflation of the value of the euro to volatile energy prices.

"Assumptions for Brent prices have been revised slightly downwards to an average of USD$55.50 a barrel in 2017 and USD$55.90 a barrel in 2018, 1.6 percent lower than in the winter 2017 forecast," the report said. "Global oil supply stood at 96.5 barrels a day in February, which is below the International Energy Agency (IEA) projection for 2017-Q1 global consumption of 96.7 million barrels a day, implying slightly declining inventories. The IEA’s projection for global oil demand growth in 2017 is 1.4%, which is below the 1.6% increase recorded in 2016.”

The Organization of Petroleum Exporting Countries (OPEC), of which not a single European Union country is a member, has curtailed its output by over 1.2 million barrels per day, as promised in a November deal. But increasing production from Nigeria and Libya, both OPEC members that are exempt from the quotas, and rising activity in the American shale sector is hampering efforts to recover oil prices.

Related: 3 Reasons Natural Gas Is Heading A Lot Higher

The cut deal is set to expire in June, but OPEC members will discuss a possible extension of the deal on May 25 in Vienna during its quarterly summit. The eleven NOPEC countries that agreed to cut another 600,000 bpd of crude production will also meet there.

By Zainab Calcuttawala 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