A survey of analysts say U.S. crude futures will average $67.32 a barrel and Brent crude will average $72.87 a barrel in 2018. This is the 10th consecutive month in which analysts have raised their oil price forecasts. WTI Crude is $69.83; Brent is $75.08 this morning.
The market has been bouncing between gains and losses in recent weeks, as traders weigh bearish developments including global trade frictions against bullish factors such as geopolitical risk to supply in Iran. WTI Crude is $70.02: Brent is $74.93 this morning.
The oil industry needs to replace 33 billion barrels of crude every year to satisfy anticipated demand growth. This year, new investments are set to account for an increase of just 20 billion barrels say, analysts. Markets are closed on Sunday.
Saudi Arabia’s decision to temporarily halt all oil shipments through the Bab al-Mandeb Strait brought downward pressure on prices while a big draw in U.S. crude and gasoline stocks last week gave it support, say analysts. WTI Crude is$69.48; Brent is $74.47.
The U.S. Energy Information Administration says a full closure of Bab el-Mandeb would force tankers sailing from Saudi Arabia, Kuwait, Iraq and the United Arab Emirates around the southern tip of Africa, which would add to transit time and cost. WTI Crude is $69.24; Brent is $74.23.
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