WTI Crude Price ‘Will Struggle’ to Stay Above US$75

West Texas Intermediate (WTI) crude oil prices will struggle to move sustainably above US$75 per barrel this year due to strong supply growth.

 

That is the view of oil and gas analysts at BMI Research, who expressed the sentiment when answering questions following a recent BMI-hosted webinar, which covered the company’s 2018 oil price outlook.

 

The analysts conceded, however, that high utilisation at US refineries leading into the summer driving season would offer a price “upside” over the coming months.

 

“We expect WTI will average US$68.5 per barrel this year, up from US$50.9 per barrel in 2017,” the analysts said.

 

“Prices will average above the US$70 per barrel mark thereafter on the back of a tightening global supply/demand balance, supporting export led growth in the US” the analysts added.

 

BMI forecasts that Brent crude oil prices will average US$73 per barrel in 2018. Analysts at the company said the Middle East would remain the “main driver of geopolitical risk premia” in Brent and confirmed that they expected prices to become “increasingly sensitive” to events in the region as the market tightens in the coming years.

 

Source: Rigzone