The summary of market info as of 8 Apr 2015 is as follows:
- Saudi Arabia, raised pricing to Asia as refining margins improved for buyers in the country’s biggest market. Defending market share is still an issue due to potential more crude from Latin American producers to Asian market.
- EIA forecasts that Brent prices will average $59.3/bbl in 2015 and $75.0/bbl in 2016, while WTI prices expected to be $52.47/bbl in 2015 and $70.0/bbl in 2016. The forecast don’t take addition Iranian supply into consideration.
- If the IAEA verifies Iran’s compliance with curbs on its nuclear program, The U.S. and European Union would lift economic sanctions. This will increase the oil production from Iran and could lead to an annual average growth of about 500,000 barrels a day in global inventories in 2016, stressing storage capacity and pressuring prices.
- Price forecast poll of 40 market analysts as of 8 Apr’15 estimates Brent at average $66.3 in 2015 and $77.2/bbl in 2016, and WTI at average $60.27/bbl in 2015 and $71.9/bbl in 2016.
Based on the graph, we estimate SLC will be stable to $54.76/bbl in April 2015 and will average $ 56.13/bbl for full year 2015.
Disclaimer: The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only and would be updated every month.