Banking experts at Wall Street revised downward the forecasts for oil prices in 2019, reports The Wall Street Journal. Representatives of 13 investment banks that took part in a recent survey conducted by the WSJ, predict that the average cost of Brent black gold next year will be $ 69 per barrel, not $ 77, as was previously expected, in November. Estimate for WTI crude was lowered from $ 70 to $ 63 a barrel.
It is reported that the deterioration of the "oil" expectations of bank analysts was due to fears associated with a weakening of demand and excess production of hydrocarbons at the global level.
In early October, oil prices reached their highest levels in four years, but since then they have sunk more than 30%. Even the new OPEC + agreements on the reduction of raw materials production could not stop the drop in prices.
"It is assumed that next year will be no less difficult for the oil market than the outgoing one, primarily because the growth rate of the global economy is slowing down, which may weaken the demand for black gold," said Eugen Weinberg, head of research commodity market at Commerzbank AG.
"However, I believe that in 2019, OPEC + will still be able to restore the balance of supply and demand in the oil market," he added.
"Reductions in the production of black gold by OPEC +, restrictions on oil production in Canada, as well as a further reduction in Iranian exports due to sanctions, probably should be enough for the raw materials reserves in developed countries to return to values below the average for five years", noted Jason Gammel, an analyst at the Jefferies Group.
Earlier this month, the International Energy Agency (IEA) reported that in October oil reserves increased by 5.7 million barrels, to 2.9 billion barrels, reaching a peak from January 2018.