The Eagle has landed (ICP forecast as of 11 Nov 2015)

November 11, 2015 • Tell FriendsPrinter Friendly

The summary of market info as of 11 Nov 2015 is as follows:

  • OPEC sees oil prices have bottomed by below reasons:
    • Demand is going up in 2015 and 2016, as predicted by EIA
    • Non-OPEC supply is going down
    • U.S oil production is shrinking
    • Drilling has slowed to a standstill
    • Inventory is burning off slowly
  • It is also reflected in commodity market, the net-long position in West Texas Intermediate crude rose 20 percent in the week ended Nov 3.
  • 2016 is the year of transition for market re-balancing. Demand is expected to grow around 1.2-1.5 million barrels a day, and on the other side Iranian oil comes back into the market. It could be a tough year.
  • EIA forecasts WTI at $49.97 for 2015 and $51.25/bbl for 2016, while Brent at $53.92/bbl and $56.17/bbl for 2016.

Based on the graph, we estimate SLC will stable to $42.37/bbl in November 2015 and will average $ 50.16/bbl for full year 2015.

Nov 2015

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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