LONDON: Brent crude is expected to average $70 per barrel in 2019 according to an energy sector outlook from Bank of America Merrill Lynch (BAML).
It expects the WTI grade to average around $59, helped both by demand growth and a production cut from OPEC and some of its allies.
OPEC is due to meet today in Vienna, followed by talks with allies such as Russia on Friday.
“The global oil market has sold off sharply in recent weeks mostly on the back of a major shift in US and Iran supply expectations for 2019,” said Francisco Blanch, head of global commodities and derivatives research.
“While US production has easily beaten expectations in September and October, it is also important to note that Russia, Saudi Arabia, and Libya oil production has surprised to the upside in recent months.”
BAML said that rising inventories had started to become a problem for OPEC and its allies and so was expecting a “meaningful reduction” in OPEC output.
Russian Energy Minister Alexander Novak said that he had held a “good” meeting with his Saudi counterpart Khalid Al-Falih on Wednesday and that more discussions were planned.
Oman’s oil minister said that he believed OPEC and its allies would reach a deal this week to cut oil production, Reuters reported.
Brent likely to average $70 next year, says American bank
Brent likely to average $70 next year, says American bank
- Bank of America Merrill Lynch expects the WTI grade to average around $59, helped both by demand growth and a production cut from OPEC and some of its allies
- BAML said that rising inventories had started to become a problem for OPEC and its allies and so was expecting a meaningful reduction in OPEC output
