“The market still had low expectation” (ICP Forecast as of 9 Mar 2017)

March 9, 2017 • Tell FriendsPrinter Friendly

The summary of market info as of 9 March 2017 is as follows:

  • Since the OPEC countries and Russia agreed to cut output, oil prices have stabilized at around $50-$55 a barrel, up from $45-$50 a barrel before. Yet, prices are struggling to rise further as U.S. crude stocks increase to record levels.
  • Global crude inventories aren’t draining as quickly as  expected, opening the door for an extension of the production cuts into the second half of the year. “Until the new agreement made, prices threatened to return to the levels seen in early 2016” of less than $30 a barrel, the IEA said.
  • China’s crude imports surged after the government granted import quotas, unfortunately didn’t make big impact to the price. In addition, there is a global assumption of slowing growth of oil demand, that will further triggering price shocks.
  • EIA forecasts WTI at $53.50 for 2017, while Brent at $54.63/bbl for 2017.

Based on the graph, we estimate SLC will be a little bit increased to $54.59/bbl in March 2017 and will average $ 54.43/bbl for full year 2017.

SLC Mar Edition 2017

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