Newspaper WSJ predicted the rise in oil prices to $60 by 2016


Moscow. October 30. Oil prices rises above $60 per barrel until the end of 2016, experts predict the largest investment banks that participated in the survey The Wall Street Journal.

The average price for Brent in 2016 will be $58 per barrel, WTI at $54 per barrel, according to the consensus forecast of 13 analysts. A few months ago many of them were predicting prices around $70 per barrel.

Much of the negative forecast of oil prices contributed to the quarterly financial results of international oil companies. In particular, only last week such companies as Shell, Total and Eni have announced write-downs of assets in excess of $15 billion in the third quarter.

Analysts note that despite the reduction in production of shale oil in the USA that caused the current oversupply in the market, Saudi Arabia and Russia continue to produce oil at a record pace. In addition, by the middle of 2016 Iran may increase exports by 500 thousand barrels per day in the case of removal of sanctions from the country.

The demand for fuel in the world could slow because of reduction in the rate of growth in the emerging economies, among which a special place is occupied by China. In the third quarter, China’s GDP grew by 6.9%, the slowest rate since 2009, failed to reach the target rate of 7%.