Date: 27 November 2018 , 19:16
News ID: 2721

Survey Shows Brent Price to Average $75 Next Year

Brent Crude is expected to average $75.50 a barrel next year, according to an S&P Global Platts survey of 11 top banks and oil brokers, who see OPEC cutting oil production by at least 1 million barrels per day and oil demand growth still healthy despite signs of weakness.
Survey Shows Brent Price to Average $75 Next Year

The participants in the Platts survey, however, cut their forecasts for Brent Crude prices compared to early October. Back then, when oil prices hit four-year highs on fears of significant losses of Iranian supply, the banks had expected Brent to average $78.51 per barrel in 2019.

For 2018, Brent is expected to average $73.91, down from the October survey forecast of $74.40, and compared to average Brent Crude price of $73.26 so far this year.

The key reason for the banks to see Brent crude prices recovering from the current $63 a barrel is the expectation that OPEC will announce a production cut at its meeting in early December - of 1 million bpd or even more - to support oil prices, prevent a new glut, and drive the price of oil back into the $70s.