Brent crude prices could average US$58/bbl in 2016

Thomson Reuters has released its August Oil Market Report. According to Thomson Reuters’ Oil Research & Forecasts team, crude prices could rise up to US$50/bbl in the very short term, however prices are expected to remain flat at these levels with no significant recovery expected until early 2016./p>

Report highlights

• Brent Crude prices are forecast to average US$58/bbl in 2016, US$8/bbl lower compared to earlier projections, on the back of higher future supply, particularly from Iran.
• Forecast for 2015 has also been revised lower with a short term target of US$50/bbl set to remain a key market level for the remainder of the year.
• Macro economic concerns related to Chinese demand together with a bullish supply outlook supported by additional Iranian volumes in 2H16 are expected to loosen supply demand balances.
• The WTI-Brent spread is expected to tighten more drastically than previously forecasted in 2016 with our projections indicating an average spread of US$2/bbl.

The monthly Oil Market Report reviews oil supply demand fundamentals, macroeconomic trends and geopolitical issues, as well as speculative activity. 

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/refining/07092015/brent-crude-prices-could-average-us-58-bbl-in-2016-1356/