• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 2 hours Socialists want to exorcise the O&G demon by 2030
  • 17 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 17 hours Oceans "Under Fire" Of Plastic Trash
  • 1 day Is Natural Gas Renewable? I say yes it is.
  • 12 hours Cheermongering about O&G in 2019
  • 12 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 2 days Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 2 days Making Fun of EV Owners: ICE-ing Trend?
  • 18 hours Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 3 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 1 day North Sea Rocks Could Store Months Of Renewable Energy
  • 2 days Orphan Wells
Is Kuwait’s $500 Billion Oil Plan Overoptimistic?

Is Kuwait’s $500 Billion Oil Plan Overoptimistic?

Kuwaiti Oil Minister Khaled al-Fadhel…

New Tech Converts CO2 Into Electricity And Hydrogen

New Tech Converts CO2 Into Electricity And Hydrogen

Carbon capture is nothing new,…

Wood Mackenzie Sees Oil Markets Recovering In H2 2017

Rigs

Regardless of whether OPEC manages to pull off a real deal on curbing production, the oil market is bound to recover in the second half next year, Ann-Louise Hittle, head of macro oils at Wood Mackenzie, told Russia’s TASS agency in an interview published on Thursday.

Even if OPEC and non-OPEC were to reach, and stick to, a deal on production cuts, the amounts would fall within the typical seasonal declines in the fourth quarter this year and in the first half next year, Hittle said.

Should a deal go through, “it would accelerate the rebalancing of supply and demand during late 2016 and 2017”, the analyst noted. A deal would imply a larger stock draw in the second half of next year.

“That would support prices above our current expectation for an annual average in 2017 of US$55 per barrel for Brent likely towards US$60 per barrel annual average,” she added.

The UK consultancy firm sees the price of Brent averaging US$50.35 per barrel in the fourth quarter this year. OPEC’s efforts to reach an agreement has already helped to support oil prices, but Wood Mackenzie had been expecting prices to stabilize in this current quarter, due to the “gradual rebalancing of supply and demand currently underway,” according to Hittle.

The analyst sees an OPEC deal “unworkable” at this point due to the exemptions some countries demand, because it would leave a few producers, such as Saudi Arabia, bearing the brunt of the production cuts.

Related: Saudi Aramco’s Chief Sees Oil Rebounding In H1 2017

In December of last year, Wood Mackenzie had predicted that the OPEC supply uncertainty would be the wild card for the oil market this year.

“A major uncertainty around the projected rebalancing of supply and demand during 2016 centers on OPEC and the actions of individual member nations,” WoodMac said back then.

More recently, Wood Mackenzie said that in the world of low oil prices, the biggest oil companies were scaling back their exploration budgets and would be seeking to grow via mergers and acquisitions rather than spending on drilling for new oil.

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