Famous investment banks, as well as some of the largest energy companies are losing hope that crude oil prices could reach even $60 in 2016. We recall that last year a barrel of oil cost over $100. Today, the weak demand for "black gold", as well as an overabundance of it on the market sent benchmark to the $50 in the third quarter. Now this indicator is at its lowest stable level since the financial crisis.
WSJ analysts recently conducted a survey among the largest investment banks. It showed that in the opinion of bankers, the current oversupply of oil on market could mean that in 2016 the price for Brent crude oil will be $58 per barrel, WTI is projected to be fixed at $54. It is noteworthy that most of these banks only a couple of months ago predicted $70 per barrel next year.
Experts from the Royal Dutch Shell PLC and Total SA on the eve said on expulsion of billions dollars at the end of quarter. During this period, oil prices have failed to record levels since the beginning of financial crisis. Earlier this week, PLC announced plans to change its business model in order to make a profit in 2017 during $ 60 per barrel. Yesterday, the price for Brent crude oil was trading at $ 48.80 per barrel, WTI at the end of trading session has cost $46.06 per barrel. Shale excitement in the United States, which provoked a surplus of oil on the market started descending. However, Saudi Arabia and Russia do not hurry to cut record production rates. Market begins preparing for supplies from Iran. Despite the high volumes of oil production the demand is slowing. An important role in this play a crisis in the Chinese economy, which is actually the world's second largest oil consumer.