JP Morgan Lowers Oil Costs Forecast By $thirteen/barrel
Baku, Azerbaijan, Dec. 18
By Aygun Badalova – Pattern:
Analysts of the US JP Morgan bank have lowered Brent price forecast by $13 to $35 a barrel for the primary quarter of 2016.
They equally revised down 1Q2016 WTI value to $33.50 a barrel.
“Oil markets are trapped in a vicious crosscurrent of hotter weather, slower non-OPEC provide adjustments and OPEC’s clearest signal yet that there is no deviation in sight from defending market share by key producers,” analysts mentioned in a report, obtained by Development.
1Q2016 balances have been already anticipated to be oversupplied, analysts famous.
“Our recent reassessment for weaker demand in December and January and better US provide lead us to lower uses of natural gas in home uses of natural gas in home our 1Q2016 Brent forecast to $35 a barrel.
Equally, we revise down our 1Q2016 WTI price to $33.50 a barrel, and now count on a tighter spread uses of natural gas in home between the 2 crudes as the elimination of the US crude export ban marginally supports US crude markets,” they stated.
International oil prices plunged from about $108 in the primary half of 2014 to beneath $forty at the moment attributable to glut in markets.
On the brand new York Mercantile Exchange, January futures for WTI decreased by $0.57 to $34.95 a barrel on December 17, which is the bottom settlement since February 2009. January Brent crude on London’s ICE Futures change decreased by zero.33 % to $37.06 a barrel.
Brent is down 2.3 % for the week and 35 % for the yr. WTI is down 1.9 percent for the week and 34 p.c since the beginning of the yr.
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