Analysts expect oil prices growth
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Analysts of the US JP Morgan bank expect oil prices to grow above $60 a barrel by end 2017.
“Oil prices remain close to the $46 a barrel we forecast for end-June. Yet the pick-up in prices as we move through 3Q’16 has yet to materialise,” analysts said in a weekly Oil Market report, obtained by Trend.
Analysts believe that the combination of falling supply and steady demand growth year-on-year should result in inventories swinging from a build to a draw. As a consequence, analysts expect to see crude prices move higher, driven by the tightening crude market pressing up against the relatively soft product markets as rebalancing starts to gain traction.
In 2016, average Brent price is forecasted by the JP Morgan analysts at $47.3 a barrel, average WTI price – at $46.66 a barrel.
In the third quarter of the year analysts expect both Brent and WTI average prices at $53 a barrel, in the fourth quarter – at $55 a barrel.
For 2017, both Brent and WTI average price on a quarterly basis is forecasted at $52, $55, $57 and $63 a barrel respectively.
Oil prices fell on July 18 Monday as traders shrugged off the impact of the attempted coup in Turkey and the market turned its attention to bearish fundamentals, while disruptions to crude exports in Libya lent prices some support, Reuters reported.
Brent crude futures fell 36 cents to $47.25 a barrel by 1131 GMT, while U.S. crude futures were 31 cents lower at $45.64 a barrel.
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