Market Insights

November 10, 2015 • Posted in Market Insights

Week of November 9, 2015

  • Oil prices fell last week as inventories grew and US output increased slightly
  • Production in non-OPEC countries outside of the US is not expected to grow until 2020
  • US production is dropping slowly but is expected to rebound quickly if prices rise
  • US production is effectively placing an upward cap on global oil prices
  • Access to capital for the upstream supply chain could be a limiting factor in restarting US production growth as long as prices remain low
  • Continued increases in efficiency could deliver supply growth even at low prices
  • The IHS outlook for 2016–20 is annual growth of 3.1%
  • IHS forecast for November WTI is a drop to $42.63 per barrel, with December WTI at $41.45 per barrel
  • Brent crude is expected to average $46.00 per barrel and $44.50 per barrel during November and December
  • China’s economy will impact economic growth and oil demand outside China.  Chinese oil demand growth from 2000 to 2013 is 6.5% per year.

WTI Crude Oil And Brent Crude Oil 110915

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