Fitch lowers long-term oil price forecasts
By Trend
Productivity gains in the US shale sector have prompted Fitch Ratings to adjust its long-term oil price assumptions to below $60 per barrel, said the report from the company.
Fitch forecasts oil prices to average at $52.5 per barrel in 2017 and 2018 and $55 per barrel in 2019.
“An impressive supply response from US shale oil producers capped the recovery in oil prices after OPEC supply restrictions were announced last November. Nevertheless, the outlook remains for broadly stable oil prices over the near term,” said the report.
On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.
The reductions will be on the same terms as those agreed in November.
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