The Wall Street Journal predicts rise in oil prices
Analysts polled by The Wall Street Journal, raised its forecast for oil prices for the first time in five months, despite the many market risks as the agreement of OPEC and other oil producers on the restriction of the proposal is beginning to bear fruit, according to Interfax.
Earlier this month, the oil-producing countries reaffirmed their readiness to follow the agreements on the reduction of production, after reaching which the price of oil rose about 20%.
The average Brent oil price in 2017 will be about $56 per barrel is expected in December, $55 per barrel, according to the results of the WSJ poll of 15 investment banks. Evaluation price also increased by analysts at $1 – to $55 per barrel.
Experts expect that the equilibrium in the oil market will gradually recover due to supply reduction. However, the risks for this forecast they indicate the growth in US production and a weakening rate of growth of demand.
“Deal of the OPEC provided support to prices: we lived in a world where oil cost from $40 to $50 per barrel, and now – in the world with a price from $50 to $60 per barrel. However, we will see for how long this will last,” said chief analyst of the oil industry in Societe Generale SA’s Michael Wittner. In the course of trading on Tuesday, Brent crude for March delivery fell 0.1% to $55,17 per barrel, while the March contract for WTI crude lost 0.3% and was worth $52,45 per barrel.
By the end of the year, the WSJ respondents expect a price increase of Brent to just less than $60 per barrel. In 2016 the average price of the reference brand was $45 per barrel. Analysts of investment banks in their forecasts more optimistic than the majority of government departments and international organizations that track the price of oil. So, the Management of information in the field of energy (EIA) of the U.S. Department of energy estimates the average annual cost of Brent at $53.5 per barrel, and recent macroeconomic forecasts UN – at $52 per barrel.