Gold Silver Reports — Crude Oil Price Report Cut on Output Freeze Doubts — Crude Oil analysts have cut their price forecasts for the first time since February, as the prospect of the world’s largest producers agreeing to freeze output dims and US production shows signs of gradually picking up.
After five consecutive months of upward revisions, the 34 analysts and economists polled by Reuters forecast Brent would average $45.44 a barrel in 2016, slightly lower than last month’s forecast of $45.51.
The North Sea benchmark has averaged $42.59 so far this year, having ricocheted from a near-13year low of $27.10 in January to an eight-month high of $52.86 in June this year. Oil’s weakness over the last two years has ero ded the budgets of even wealthy producers such as Saudi Arabia or Qatar and forced companies around the world to cut thousands of jobs.
With the price struggling to hold above $50 a barrel, there are still questions hanging over global economic growth. An informal meeting between members of Opec and non-Opec nations in September was unlikely to result in a meaningful agreement to limit production, analysts said.
“A decision (output freeze) would be no more than lip service, as Russia and Saudi Arabia are producing near their capacity limit.So this speculation will vanish into thin air and prices will come down again,“ said Frank Schallenberger, head of commodities research at Landesbank BadenWuerttemberg. — Neal Bhai Reports