Banks up 2018 Oil-price forecasts – WSJ survey

The results of the latest Wall Street Journal (WSJ) survey of 15 investment banks showed that a majority of the banks raised their oil-price forecasts for the fourth month in a row in January, as rebalancing in crude supply pushed prices to multiyear highs.

Key Findings:

“Forecasts showed that Brent will average $61 per barrel in 2018 - higher than the $58 forecast in the December poll.

They also revised their forecast for WTI higher by $3 as well to average at $57 per barrel for the year.

They do expect prices to possibly fall in the second half of the year, as higher prices are stimulating US shale drillers to ramp up output and that could potentially strain the current coalition between OPEC and producers involved in the production cap deal.”