Tag: oil

Morgan Stanley noted that crude oil prices will reach $90 a barrel by 2020 as the 2020 sulphur cap on shipping emission come into force. The changes will increase demand for distillate products such as diesel and marine gasoil, driving up the need for crude oil. The refining industry will need to produce more "green" fuels.

EIA’s May Short-Term Energy Outlook predicts that Brent crude oil prices will average $71 per barrel in 2018, $7/b higher than last month’s STEO. EIA’s forecast for regular gasoline retail prices increased to an average of $2.79/gallon in 2018, $0.15/g higher that in last month’s STEO. Monthly average Brent crude oil spot prices have increased in 9 of the past 10 months.

Oil market has been shaped by strong growth in demand, compliance by countries party to the Vienna agreement to cut output, and the crisis in Venezuela, leading to tighter overall market conditions. The restoration of sanctions on Iran, which exports 2.5 million barrels of oil a day and is the world’s fifth-largest exporter, may affect the market balance.

Oil prices decreased on Thursday 3 of May, as a rise in US crude inventories and a record weekly US production was reported, This increase is opposing to the efforts made by OPEC to decrease supplies and tighten the market. The prices were reduced after a report by EIA, which showed that US crude inventories increase by 6.2 million barrels to 435.96 million barrels.

The World Bank expects oil prices to average $65 a barrel over 2018, increasing from $53 a barrel in 2017. This will be caused by strong demand from consumers and a simultaneous restraint by oil producers. Metals prices are expected to rise 9% in 2018, because of the same reasons. Prices for energy commodities, including oil, natural gas, and coal, will increase by 20% this year.