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OPEC, Russia’s supply discipline and demand to prop up oil prices in 2018

Gasoil News - Published on Tue, 02 Jan 2018

Image Source: Reuters
Reuters reported that OPEC and Russia’s efforts to curb oil output, combined with forecasts for strong global demand growth, are expected to keep crude prices close to USD 60 a barrel in 2018. The survey of 32 economists and analysts forecast Brent crude LCOc1 would average USD 59.88 a barrel in 2018, up from the USD 58.84 forecast in the previous monthly poll.

Oil prices, which hit 2-1/2 year highs this week, have rallied by more than 30 percent since the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers agreed to limit production from January 2017.

The producers last month extended the deal to curb output throughout 2018.

Mr Frank Schallenberger, head of commodity research at LBBW, said that “Oil demand will be high in 2018, with solid economic growth worldwide. Supply will be relatively tight because of high OPEC commitment.”

Analysts said that large supplies of crude will head to Asia to satisfy strong demand from the region. US exports to Asia have already increased with higher Middle East oil prices because of the OPEC-led output cuts and a wide WTI-Brent spread.

Meanwhile, total crude oil imports to China, one of the world’s biggest oil consumers, rebounded to the second-highest level on record in November at 9.01 million barrels per day (bpd).

Source :

Posted By : Rabi Wangkhem on Tue, 02 Jan 2018
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