The funding financial institution forecasts Brent costs to common $65 per barrel in 2019 and 2020, down from the earlier $69 per barrel estimate. WTI is seen averaging $58 in 2019 and $60 in 2020, in contrast with earlier forecasts of $61 and $62.
“Oil prices stay within the shadows of the bearish world macro backdrop,” the British financial institution stated, including the commerce tensions and manufacturing slowdown proceed to weigh on demand.
The financial institution lowered its oil demand progress forecast by 200,000 barrels per day (bpd) for each this 12 months and the following to 800,000 bpd and 1.three million bpd, respectively.
Barclays stated that whereas oil costs have been caught within the crossfire amid escalating commerce tensions, supply-demand fundamentals have been fairly supportive.
The financial institution sees U.S. oil production progress slowing considerably as decrease commodity costs are anticipated to weigh on capital spending, particularly…