But in 2019, promises decrease
Analysts on wall street continue to predict the increase in oil prices for the seventh month in a row. Prerequisites for this are the uncertainty of Iranian oil, and OPEC deal+. Representatives of the investment banks involved in the April survey believe that the Brent crude oil in 2018 will cost an average of $64/bbl. For WTI crude oil price forecast of $60/bbl. Both forecasts are $1 higher than the assessment given in March, according to encorr.
Commodities analyst at ING Bank Warren Patterson notes that OPEC, in an attempt to limit oil production, had more intensive work than anticipated. “Support of the market is likely to remain good,” he said.
As a lever for the growth of prices on oil is the uncertainty about the Iranian problem. The President of the United States Donald trump and his team must complete the revision of the comprehensive nuclear deal (VOAS), signed in 2015. to may 12.
The concerns of market participants are that the White house may decide to renew the sanctions against Tehran that would restrict Iranian oil exports. The reduction can be up to 500 thousand Barr./day says Patterson.
Successively reduced inventories in countries belonging to the Organization for economic cooperation and development (OECD). At the end of February their volume was of 2.84 billion barrels. It is only 30 million barrels. exceeds the average for the last five years.
However, analysts predict a decline in prices in 2019, as the US continues to increase production of shale oil and the OPEC deal+ can not be extended. They estimate that in 2019 the average price of Brent amounted to just above $62/barrel. WTI is about $58/bbl.
The price of a barrel of Brent oil July may 3 9:00 $73,18 (-0,25%). In June a barrel of WTI crude oil is trading at $67,84 (-0,13%). Previous bidding on the benchmarks ended at $73,13 $67,25 respectively.