Investing.com – Barclays (LON:BARC) cut their forecast for Brent prices at the end of 2018 on Friday, but insisted they remained bullish with their outlook for crude.
Specifically, these analysts reduced their estimate for the London barrel to $67 from $77 previously.
“We maintain our bullish stance, as that price is still over $10 higher than the futures curve,” they explained.
They also left their average price forecast for 2017 unchanged at $57, while noting that their second quarter forecast was for $62.
These analysts acknowledge what they called a “game of musical chairs” as U.S. shale producers ramp up production and other output disruptions get resolved.
“Assuming that OPEC’s cuts are not extended in their current form, 2018 is likely to feature higher levels of volatility as stocks continue to draw and as OPEC spare capacity decreases,” they said.
The British banks forecast for West Texas Intermediate oil is $56 for 2017 and $65 for 2018.