Bank of America Merrill Lynch estimates that supply from OPEC+ will fall by a whopping 2.6 million barrels per day (mb/d) in the fourth quarter of this year compared to the fourth quarter of 2018. That figure includes the 1.2 mb/d of agreed upon cuts, plus substantial losses from Iran and Venezuela.
IEA says demand for oil will exceed supply in Q2 2019.
Bank of America forecasts that Brent will average $70/bbl in 2019 (taking WTI into the low $60s) assuming the global economy does not have a significant slow down.
Read: https://oilprice.com/Energy/Crude-Oil/O ... -2019.html
As I have said in my weekly podcasts there is NO GLUT OF OIL. U.S. and OECD crude oil inventories are well within the 5-year range and arguably low when looked at on a days-of-supply view.
Oil prices are being held down now by the FEAR of a global economic slow down.
Oil Price Forecast - Jan 23
Oil Price Forecast - Jan 23
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group