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Forget about oil rising above $50 this summer, Barclays says

Brittany Sowacke/Bloomberg

Rising U.S. shale production is feared to keep oil prices under pressure this summer

Oil prices rising back above $50 a barrel this summer? Forget about it, says Barclays’ oil analysts in their latest outlook on the commodity. In the report out on Tuesday, the U.K. bank cut its third quarter BrentLCOU7, -0.94%  oil forecast to $49 a barrel, down from a previous forecast of $57. For West Texas Intermediate CLQ7, -0.90% the analysts see prices trading around $47 for the quarter, down from around $55 expected previously. “The recent weakness reflects the market’s need to price in a lower [U.S.] shale break-even and absorb the unexpected return of around 300-400 [kilobarrels a day] of Libyan and Nigerian oil,” they said in the report. Brent traded at $46.38 barrel on Tuesday, while crude cost $43.93. That means both now are down about 18% year-to-date, even as the Organization of the Petroleum Exporting Countries have slashed production in an effort to balance the oil market.