OPEC to push oil back to $50/bbl
Posted: Mon Mar 07, 2016 10:00 am
March 7 (Reuters) - Major OPEC producers are privately starting to talk about a new oil price equilibrium of $50 a barrel, adding to signs that the market's long, deep rout is officially over, says one of the industry's leading prognosticators.
Gary Ross, the founder, executive chairman and chief oil soothsayer at New York-based consultancy PIRA, told clients that he reckoned the "lows are in" for crude. U.S. futures have rallied since then to close at nearly $36 on Friday, with a handful of analysts also cautiously calling a bottom.
In an interview with Reuters, Ross said oil should recover to $50 a barrel by the end of the year, potentially aided by eventual supply cuts from leading producers among the Organization of the Petroleum Exporting Countries (OPEC).
"They want $50 oil, this is going to become the new anchor for global oil prices," said Ross, one of the industry's most respected forecasters for his bold price predictions and decades-long history of consulting with OPEC members.
"While it may not be an official target price, you’ll hear them saying it. They’re trying to give the market an anchor."
---------------------------------
My view is that WTI will be back over $50/bbl early in Q3 no matter what OPEC does because demand will spike this summer. - Dan
Gary Ross, the founder, executive chairman and chief oil soothsayer at New York-based consultancy PIRA, told clients that he reckoned the "lows are in" for crude. U.S. futures have rallied since then to close at nearly $36 on Friday, with a handful of analysts also cautiously calling a bottom.
In an interview with Reuters, Ross said oil should recover to $50 a barrel by the end of the year, potentially aided by eventual supply cuts from leading producers among the Organization of the Petroleum Exporting Countries (OPEC).
"They want $50 oil, this is going to become the new anchor for global oil prices," said Ross, one of the industry's most respected forecasters for his bold price predictions and decades-long history of consulting with OPEC members.
"While it may not be an official target price, you’ll hear them saying it. They’re trying to give the market an anchor."
---------------------------------
My view is that WTI will be back over $50/bbl early in Q3 no matter what OPEC does because demand will spike this summer. - Dan