uploads///Oct

What to Expect from Crude Oil Prices in 2018

By

Nov. 20 2020, Updated 10:42 a.m. ET

Hedge funds 

The U.S. Commodity Futures Trading Commission released its weekly “Commitment of Traders” report on October 20, 2017. It published that hedge funds reduced their net long positions in US crude oil (UCO) (USL) futures and options by 19,480 contracts to 219,077 contracts on October 10–17, 2017. These positions fell 8% week-over-week and 25% or by 72,376 contracts from the same period in 2016.

Hedge funds’ net bullish positions in US crude oil (SCO) (DWT) futures and options fell for the third straight week—a four-week low. It indicates that hedge funds are turning bearish or less bullish on crude oil (DBO) (UWT) prices.

Article continues below advertisement

Crude oil price forecasts  

The EIA (U.S. Energy Information Administration) released its Short-Term Energy Outlook report on October 11, 2017. It estimates that US crude oil (USO) (UCO) prices could average $49.7 per barrel in 2017—1.7% higher than the survey in September 2017. US crude oil prices could average $50.6 per barrel in 2018—2% higher than previous estimates.

The EIA added that Brent crude oil (BNO) prices could average could average $52.43 per barrel in 2017—2.7% higher than previous estimates. Brent crude oil prices could average $54.07 per barrel in 2018—4.8% higher than previous estimates. Major producers’ production cut deal and falling US and global crude oil inventories could drive oil prices higher in 2018. However, rising US crude oil production could limit the upside for oil prices.

US and Brent crude oil prices averaged $43.3 per barrel and $43.7 per barrel, respectively, in 2016.

Read Are US and OPEC Supplies Helping Crude Oil Bulls? for more on oil. Read Will US Natural Gas Prices Rise This Winter? for natural gas updates.

Advertisement

More From Market Realist

  • Table Jack on 'Shark Tank'
    Miscellaneous
    ‘Shark Tank’ Sharks Thought Table Jack Was a Wobbly Business Prospect
  • Woman using a DrainWig in a shower
    Miscellaneous
    DrainWig Hasn’t Gone Down the Drain Since ‘Shark Tank’
  • Element Bars' Jonathan Miller on 'Shark Tank'
    Miscellaneous
    ‘Shark Tank’ Stars Said Element Bars’ Valuation Was 'Insane'
  • Roger Altman
    Miscellaneous
    How Evercore Chairman Roger Altman Made His Millions
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.