President Donald Trump has…. The fall in lifting costs in the latter part of the s reflects the drop in cost of oil and subsequent reduction in taxation, which is generally tied to market prices. Live educational sessions using site features to explore today's markets.
Oil Price Forecast - Brent And WTI Oil Price Per Barrel
Long term indicators fully support a continuation of the trend. InsideFutures is a twice weekly newsletter that features a selection of the latest and best commodities commentary appearing on Barchart. Delivered every Wednesday and Friday morning to your inbox. Your browser of choice has not been tested for use with Barchart.
If you have issues, please download one of the browsers listed here. Try Premier Try Premier. Trading Signals New Recommendations. Subscriptions Futures Trading Education. Quote Overview for [[ item. Crude oil prices moved higher Friday and posted 2-week highs on a weak dollar and optimism that global economic growth will improve. The Chinese central bank PBOC cut Chinese bank reserve requirements by bp, which should improve loan availability and may spur economic growth in China, the world's second-biggest crude consumer.
Also, energy prices moved higher on the stronger-than-expected , increase in U. Dec non-farm payrolls, which is the largest increase in 10 months and shows economic strength.
Friday's data from Baker Hughes was also supportive as it showed U. Crude oil prices still have support from Wednesday's news that OPEC Dec crude production fell , bpd to a 5-month low of Bullish factors include 1 the , bpd decline in OPEC Dec crude production to a 5-month low of Contract Specifications See More. Price Performance See More. Live educational sessions using site features to explore today's markets. Most Recent Stories More News. This should have a negative impact on long-term production numbers, which will bring some equilibrium back to the supply-and-demand dynamics of crude oil.
This prediction will be even more pronounced in non-OPEC countries, where upstream investment has been more markedly reduced. With many of the easiest-to-extract shale oil plays already underway, the so-called shale oil boom could find itself falling flat on its face before it ever really even got off the ground. If the IEA forecast proves correct, U. But such a scenario carries the chance of a reversal in the economic fundamentals. A prolonged period of low WTI oil prices will continue to reduce the level of investments flowing into new projects from energy companies, a trend which, if carried to an extreme level, could possibly lead to a supply shortage down the road.
What would occur then is a price spike in crude oil. It looks as if we could be seeing slowing demand growth for oil as the decade progresses. The IEA estimates just a ,barrel-per-day average annual increase in demand growth until the end of Compare this to the estimated 1. Now, it goes without saying that the multi-decade projections are a bit fanciful, and should be taken as only the most basic sort of estimate. This is because there are too many economic and geopolitical factors at play to confidently forecast energy price movements out past a few years.
But general trends can be discerned with some small amount of confidence, and do set the stage for how companies will be allocating capital expenditures in the years to come.
The IEA forecasts that the U. There are several clear indicators already in play that point toward this reality. When you combine this reality with the forecasted low oil demand growth, you have the recipe for an oil price crash. Global oversupply continues to weigh heavily on crude oil prices. With OPEC seemingly unwilling to cut production and, in fact, maintaining it at near-record levels, there will be little respite from supply pressure from that corner of the globe.
Iraq, for example, is producing more oil than it has since