Three different oil forecasts issued this month by OPEC (the Organization of Petroleum Exporting Countries), the IEA (International Energy Agency) and the United States' EIA (Energy Information Agency) each predict lower than expected demand for oil based on weakening global economies.
With lower demand, oil prices are forecast to be lower; although all three agencies note that oil prices have been and will continue to be very volatile. The EIA's price forecast for West Texas Intermediate crude for December ranges from $57 per barrel to $110 per barrel, reflecting this increased volatility in the market. West Texas Intermediate crude is trading at a significant discount to world crude oils - and at a discount to Alaska's North Slope crude - because of transportation bottlenecks for the "landlocked" crude oil.
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