“Now, It depends on Iran” (ICP forecast as of 8 Sept 2016)

September 8, 2016 • Tell FriendsPrinter Friendly

The summary of market info as of 8 Sept 2016 is as follows:

  • Crude rallied last month as investors parsed comments from OPEC and Russia for signs of whether oil producers will agree on measures to revive prices.
  • OPEC will held meeting with outside producers include Russia in Algiers at the end of Sept. Market looks there is a possibility Iran will likely be more open to joining a production freeze agreement since the current situation is different than April when Iran rejected the previous agreement. Now, Iran has reached full capacity.
  • Industry data showed U.S. stockpiles dropped last month, trimming inventories that are at the highest seasonal level in more than 30 years. However, as some drilling rigs return to work and productivity from existing wells increases, the dropped will be no longer.
  • EIA forecasted a little bit higher prices than previous month. EIA forecasts WTI at $41.92 for 2016, while Brent at $42.54/bbl for 2016.

Based on the graph, we estimate SLC will be a little bit increased to $42.06/bbl in Sept 2016 and will average $ 39.49/bbl for full year 2016.


Disclaimer: The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only and would be updated every month.

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