According to Xinhua news May 11th, the U.S. Energy Information Administration (EIA) latest monthly report is expected this year, the average price of WTI crude oil futures $40.32 per barrel, compared with the previous forecast of 34.60 U.S. dollars a barrel. It is predicted that this year, Brent crude oil futures average price of $40.52 a barrel, a significant higher than the agency had predicted the average price of 34.73 U.S. dollars a barrel. The agency also expects the average price of WTI crude oil futures in 2017 was $50.65, compared with the previous forecast of $40.58 is also a substantial increase.
In early January of this year, all kinds of institutions are still not optimistic about the trend of oil prices, have lowered the expected price of oil. However, in April and May, this position has been loosened, their views on the trend of oil prices change. In April 26th, the World Bank released the commodity market outlook report, the 2016 crude oil price forecast from $37 to $41 a barrel.
However, as oil prices pick up, the power to increase production in the. The U.S. Energy Information Administration said that crude oil prices will boost investment, so will the United States in 2017 crude oil production is expected from the April forecast of 8 million 40 thousand barrels daily increase to 8 million 190 thousand barrels, 100 thousand barrels more than previously forecast. The Department will also increase the 2016 second quarter U.S. oil demand forecast 0.5% to 19 million 580 thousand barrels, the annual demand will increase by 0.1% to 19 million 540 thousand barrels, but the Department will be reduced by 0.2% to 19 million 660 thousand barrels per day demand forecast in 2017.
In the case of crude oil supply and demand is not significantly changed, the international oil price changes or will present a situation of repeated shocks. While the world bank’s commodity market outlook raised oil prices expected, but if the OPEC production, rather than the OPEC countries cut production rate is lower than expected, the price of energy is likely to fall further.
