Salient to Investors:
Miswin Mahesh and Michael Cohen at Barclays said:
- OPEC will not cut supplies sufficiently to overcome a lackluster demand picture half1 2015 – Brent will average $93 and WTI will average $85 in 2015.
- Oil has reached its lowest point for 2014 but will recover modestly during Q4 as the oversupply temporarily diminishes.
- The supply glut will accumulate again in 2015 amid booming US shale output.
- Brent will drop to $89 and WTI will drop to $81 in Q4 2014, but Brent will rebound in half2, 2015 to above $100.
Jeffrey Currie et al at Goldman Sachs cut 2015 oil forecasts, saying OPEC is losing its pricing power – Brent will average $85 and WTI $75 in Q1 2105.
Read the full article at http://www.bloomberg.com/news/2014-10-28/barclays-cuts-oil-price-forecasts-on-world-supply-surplus.html
Click here to receive free and immediate email alerts of the latest forecasts.