International Energy Association (IEA) reported booming U.S. output will offset falling exports from Iran and Venezuela.
Two major investment banks, Bank of America Merrill Lynch and Barclays, have recently predicted that oil prices in the medium-term will remain locked in around $60/barrel until 2024. Bank of America believes that crude prices will bounce between $50/barrel and $70/barrel, but will remain centered around $60/barrel and most likely won’t leave that range. Barclays largely agrees with Bank of America in the belief that the volatility won’t continue and we’ll have relatively stable oil prices through the mid-2020s.
Oil prices fell more than 1% yesterday hitting 14 month lows after reports of an increase in U.S. inventories along with surging shale output.
The world of crude oil is buzzing right now, as OPEC is currently meeting in Vienna, with a goal of reaching an agreement over production levels within the next 6 months. Oil prices dropped over 3 percent on Thursday as OPEC agreed to cut production. However, the cartel is waiting to decide on the actual size of reduction until after a discussion with Russia. This could delay the decision until Friday, when OPEC is set to meet with non-members.