Crude oil is a naturally produced substance contained of hydrocarbons. It is considered a fossil fuel for there is strong evidence that it’s invented by fossilized animals and plants. Oil is on course for a second annual gain after last month’s decision by OPEC, Russia and other non-OPEC members to extend production curbs in an effort to rebalance the Oil market.
February WTI crude oil (USO) futures agreements are above their 20-day, 50-day, and 100-day moving averages on December 26, 2017. It indicates that prices could trade higher. Any fall in US crude oil inventories and an unplanned supply outage could push crude oil (DBO) prices higher. All of these factors suggest that crude oil prices could start 2018 on a positive note. However, any rise in US crude oil production could cap the upside for crude oil (UWT) prices.
A Reuters survey projected that Brent and US crude oil prices could average $58.84 per barrel and $54.78 per barrel and Investment bank Jefferies estimated that Brent and WTI oil price are expected to average $63 per barrel and $59 per barrel in 2018 and. It believes that the fall in global crude oil inventories below the five-year average in 3Q18 will help oil prices. The production cut extension and improving global crude oil demand will support oil prices in 2018. However, the rise in non-OPEC oil supplies in 2018 will pressure oil prices. The EIA expected that the Brent (BNO) and US crude oil (SCO) prices could average $57.26 per barrel and $52.77 per barrel in 2018.
A Wall Street Journal survey projected that Brent and US crude oil prices are expected to average $56 per barrel and $53 per barrel in 2018. The IEA (International Energy Agency) expects that US oil production will increase by 870,000 bpd in 2018, which will add to non-OPEC supplies. The rise in non-OPEC supplies could partially offset the production cuts in 2018. It would weigh on oil (UCO) prices in 2018.
Crude Oil Prediction 2018