Russia’s Central Bank: Crude Oil Prices Could Hit $40 per Barrel

Crude oil prices 

Crude oil (USL) (IEZ) (PXI) (XOP) prices fell ~12% in the last month. For more, read Why Crude Oil Prices Could Collapse This Week. Lower crude oil prices have a negative impact on oil and gas producers’ earnings such as Noble Energy (NBL), Chevron (CVX), Contango Oil & Gas (MCF), Denbury Resources (DNR), and Cobalt International Energy (CIE). For more on prices and bearish drivers, read Part 1 and Part 4 of this series.

Russia’s Central Bank: Crude Oil Prices Could Hit $40 per Barrel

Crude oil price forecasts  

Russia’s central bank expects that Brent crude oil prices could fall as low as $40 per barrel by the end of 2017 if OPEC doesn’t extend major producers’ production cut deal in 2H17. It also added that Brent crude oil prices might stay at that level in 2018 and 2019. For the latest updates on oil producers’ deal, read Part 1 of this series.

REYL Bank expects that crude oil prices could trade between $50 and $60 per barrel in 2017. The EIA estimates that US WTI and Brent crude oil prices will average $53.5 per barrel and $54.6 per barrel, respectively, in 2017. It also estimates that US WTI and Brent crude oil prices will average $56.2 per barrel and $57.2 per barrel, respectively, in 2018. US WTI and Brent crude oil prices averaged $43.3 per barrel and $43.7 per barrel in 2016, respectively.

Read What Can Investors Expect in the Crude Oil Market in 2017 and Is the US Delaying the Crude Oil Market’s Rebalance? for more on crude oil prices.

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

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