Global Market: Analysts Revise Oil Price Forecasts to 2022

Analysts at Fitch Solutions Macro Research have revised their oil price forecasts to 2022 in a new report, which was sent to Rigzone on Tuesday.

The analysts now forecast that Brent will average:

• $73 per barrel in 2018
• $75 per barrel in 2019
• $82 per barrel in 2020
• $84 per barrel in 2021
• $85 per barrel in 2022

Last month, the analysts forecasted that Brent would average:

• $75 per barrel in 2018
• $82 per barrel in 2019
• $85 per barrel in 2020
• $89 per barrel in 2021
• $91 per barrel in 2022

According to the latest report, the analysts now forecast that WTI will average:

• $66 per barrel in 2018
• $69 per barrel in 2019
• $76 per barrel in 2020
• $78 per barrel in 2021
• $80 per barrel in 2022

Last month, the analysts forecasted that WTI would average:

• $68 per barrel in 2018
• $75 per barrel in 2019
• $81 per barrel in 2020
• $85 per barrel in 2021
• $87 per barrel in 2022

“The fundamental outlook has deteriorated since our last oil price outlook, largely due to the US softening its approach to sanctions on Iran,” the analysts said in the latest report.

“Our views on supply and demand are not radically altered, but the global balance has tipped to surplus,” the analysts added.

Although oil may face “further pain” in the near term, according to the analysts, the Fitch Solutions Macro Research representatives said their 12-month outlook on the market is “bullish from current levels”.

“The decline in prices looks increasingly overdone and sentiment is overly bearish, given the fundamentals,” the analysts stated in the report.

“Markets appear to be pricing an aggressive slowdown in economic activity and oil demand. Growth is slowing, but demand from EMs [emerging markets] remains generally strong. And while supply is looser, cut backs from OPEC+ in December and ongoing declines in Venezuela and Iran should help Brent to recover in the coming months,” the analysts added. source: by  Andreas Exarheas |Rigzone Staff