Weaker-than-expected demand is set to tip the oil market into a surplus over the next five quarters, Macquarie said in a Friday note
as it lowered its Brent and WTI oil forecasts for the rest of the year. “As we enter shoulder and turnaround season, the ‘last hurrah’ for oil in the form of Q3 tightness is quickly fading as our balances contemplate heavy oversupply across the next five quarters,” according to the Macquarie note cited by BOEreport.com. The bank revised down its forecast for Brent Crude price by $2 per barrel to $80 for the rest of 2024.
This week, both OPEC and the International Energy Agency IEA lowered their global oil demand growth forecasts, citing weaker Chinese consumption so far this year. Despite the second consecutive downward revision of its demand growth estimate, OPEC is still much more optimistic than the IEA on Chinese and global oil consumption growth this year. Other Wall Street banks have also recently lowered their oil price estimates. Weaker Chinese oil demand, high inventories, and rising U.S.
Oil Prices Oil Supply Macquarie Oil Surplus
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