The summary of market info as of 11 Mar 2015 is as follows:
- EIA reported U.S. crude supplies increased to 448.9 million barrels last week. This caused crude inventories climbed by 4.51 million barrels. This situation seems underpin how weak the fundamental picture in the U.S. to boost the demand.
- Oil is struggling to sustain a rebound this year amid speculation that a global supply glut that drove prices into a bear market in 2014 may worsen. U.S. crude production and inventories have surged to the highest levels in more than three decades even as the number of oil drilling rigs decreased.
- EIA forecasts that Brent prices will average $59.5/bbl in 2015 and $75/bbl in 2016, while WTI prices expected to be $52.15/bbl in 2015 and $70.0/bbl in 2016.
- Reuters crude oil price poll of 34 industry analysts as of 27 Feb’15 estimates Brent at average $59.0 in 2015 and $71.8/bbl in 2016, and WTI at average $54.5 in 2015 and $66.9/bbl in 2016
Based on the graph, we estimate SLC will decrease to $50.2/bbl in Mar 2015 and will average $ 55.1/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.