DOHA: QNB has revised up its oil
price forecast to average $44.7/barrel in 2016, up from its previous forecast
of $40.8. The continued rebalancing in the oil market is expected to lift
prices to an average of $55.0 in 2017, up from a previous forecast of $51.3 and
$57.9 in 2018, QNB analysts said yesterday.
The rebalancing in the oil market
has been stronger than expected. On the demand side, the International Energy
Agency (IEA) currently expects global demand growth to reach 1.4m barrels per
day (b/d) in 2016, up from their previous forecast of 1.2m b/d. The strong
demand growth is driven by emerging markets, especially China and the rest of
emerging Asia. Furthermore, demand from Europe is proving to be resilient
despite increased uncertainty from the Brexit vote. The additional demand
should help clear some of the excess supply in the market, estimated by the IEA
to be 1.7m b/d in 2015.
Source: zawya