Citi has reduced the forecast of average oil prices for 2015. The bank analysts expects that by the end of the first – early second quarters price of 1 barrel of WTI oil could go down to $20.00, reported Reuters.
Bank has also reduced the forecast of average Brent oil price from $63.00 to $54.00 per barrel in 2015 and from $69.00 to 68.00 per barrel in 2016.
As far as WTI oil is concerned, its price forecast was reduced from $55.00 to $46.00 per barrel in 2015 and from $62.00 to $61.00 per barrel in 2016.
Citi analysts also expect that deliveries of non-OPEC member-states will go down by 200,000 barrels a day by 2016, because of reduction of shale oil production in the US.
On Monday OPEC released a report, in which it has significantly increased the forecast of claimed oil extracted by the OPEC member-states in 2015.
OPEC expects that demand in its oil will total 29.2 million barrels a day, up 400,000 barrels against the January forecast. This is first of all caused by expectation of reduction of deliveries from the non-OPEC member-states. In particular, the volume of oil production in the US will go up, but not at the pace expected a month ago, reads the report. The OPEC February report shows that the excessive oil supply will continue going down this year.
