“Deal or No deal” (ICP forecast as of 9 Nov 2016)

November 9, 2016 • Tell FriendsPrinter Friendly

The summary of market info as of 9 Nov 2016 is as follows:

  • OPEC warned of prolonged instability in the oil market if the producer group and other major crude suppliers fail to agree on the next meeting in Vienna on November 30 2016. This meeting is intended to curb a global glut to re-balancing the market by limiting output. Without a deal, OPEC will return to the policy of pumping without limits to secure sales and back to battle for market share.
  • Oil investors are growing more doubtful that OPEC can seal a deal. Recent production gains from producers outside the OPEC including Russia, the United Kingdom, and Brazil, and the continued resiliency of onshore U.S. producers are applying downward pressure on crude oil prices. Increased volumes from Nigeria, Libya, Iran, and Iraq are set to enter the market and could complicate efforts of OPEC’s members to reach agreement on production quotas.
  • EIA forecasts WTI at $42.68 for 2016, while Brent at $43.13/bbl for 2016.

Based on the graph, we estimate SLC will be a little bit increased to $43.50/bbl in Nov 2016 and will average $ 40,35/bbl for full year 2016.

nov-2016

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