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Saturday, 24 February 17:43 (GMT -05:00)



Stock and commodities markets

Wall Street Banks Improve Their Oil Forecasts


For the first time in 6 months, Wall Street banks seem to be optimistic about the near future of crude oil, The Wall Street Journal reports.

 

In late October, Bloomberg interviewed America’s 14 biggest investment banks. According to the results of this survey, the average prices of Brent and WTI oil are expected to be around 54 and 51 dollars per barrel respectively. The forecast exceeds the previous one by 1 dollar per barrel for each of them.

 

Last week, Brent oil exceeded the $60/b threshold for the first time in more than 2 years. Experts say that the recent price rally indicates success – the OPEC+ agreement signed in 2016 and extended this year seems to be finally brining fruit.

 

NordFX experts say that it’s now clear why Saudi Arabia, Russia and other OPEC+ participants are willing to extend the deal even further to try and push oil prices even higher.

 

According to a special committee responsible for monitoring the process of implementing the OPEC+ deal, as of September 2017, all the participants complied with the deal by 120%. However, NordFX experts say that the future of the OPEC+ deal is now questioned because of the oil production in the United States. According to The Wall Street Journal, the recent success in the global market of crude oil was mainly dictated by a production slowdown in the USA because of the hurricanes (737 oil rigs last week against this year’s high of 768).

 

However, Commerzbank analysts predict an increase in the U.S. shale oil production in the 1st quarter of 2018 up to a record-high 10 million barrels a day. If that’s the case, this is probably going to press down the prices and make them retrace in the following months. It should be noted that last year WSJ experts predicted the average price of $72/b, while today’s forecast is only $58/b.

 

 

 

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Is crude oil really expensive today?

Oil expert Sergei Shelin decided to share with us his thoughts on the processes currently going on in the global oil market. In particular he thinks that crude oil has been struggling to consolidate around 70 dollars per barrel but the thing is that even the world's biggest oil producers and exporters don't believe in high oil prices in the future.


Publication date: 01 February 10:38 AM

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Publication date: 16 January 11:46 AM

Brent Oil Is Getting Closer to $70/b, Provoking a Shale Storm

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Publication date: 11 January 11:59 AM

OPEC Nations Don’t Want $60/b

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Publication date: 10 January 03:45 AM

Investment Banks Make Controversial Oil Forecast for 2018

After the OPEC+ deal was extended not so long ago, several investment banks changed their predictions for the global oil prices in 2018. Bloomberg tried to compile those prediction into a single article. 

Publication date: 02 January 11:44 AM

CBOE Launches World’s First Bitcoin Futures

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Publication date: 11 December 02:26 AM

American Shale Oil Producers Enjoy OPEC+ Deal Extension

On the last day of November, the OPEC and several non-OPEC oil exporters met in Vienna to discuss the future of the global oil market during the OPEC summit. The summit ended with extending the OPEC+ deal until the end of 2018. Experts say this decision means the OPEC+ participants have lost the long-term oil war with American shale oil companies.

Publication date: 03 December 11:03 PM

OPEC Is Worried About U.S. Shale Oil Production Prospects

The OPEC is concerned that their American rivals producing shale oil may catch at the chance given them by the OPEC+ deal. The deal is aimed to cap oil production and restore the market balance in favor of higher oil prices. The OPEC+ agreement is likely to be extended during the forthcoming OPEC summit on November 30th in Vienna, Austria.

 
Publication date: 29 November 11:49 AM