Why Major Banks Upgraded Crude Oil Price Forecasts

Bearish drivers for crude oil prices  

The rise in crude oil production from Libya and Iran in 2017 could pressure crude oil (PXI) (USL) (USO) (UCO) prices. For more on this, read the previous part of the series. For more on crude oil prices, read Part 1 of this series. For more bearish and bullish drivers, read Decoding US Crude Oil Prices in the Last 12 Months.

Why Major Banks Upgraded Crude Oil Price Forecasts

Crude oil price forecasts 

Wall Street Journal survey of major banks predicts that Brent crude oil prices will average $56 per barrel in 2017 and that US WTI crude oil prices will average $55 per barrel in 2017. Brent and WTI crude price forecasts were upgraded by $1 per barrel from last month’s survey. Banks upgraded crude oil price forecasts due to the crude oil market rebalancing following major oil producers’ production cut plans. 

Simmons & Co. International expects crude oil prices to trade between $50 per barrel and $60 per barrel in 2017.

Higher crude oil (FENY) (SCO) (XES) prices can have a positive impact on oil and gas producers’ earnings like ConocoPhillips (COP), Cobalt International Energy (CIE), and QEP Resources (QEP).

Read Will Crude Oil Prices Test 3 Digits Again? for more on crude oil price forecasts.

For more on crude oil prices, read What Can Investors Expect in the Crude Oil Market in 2017 and OPEC, Russia, and the US Will Impact Crude Oil in 2017.

For related analysis, visit Market Realist’s Energy and Power page.