Quarterly oil market outlook Apr'18
The first quarter of 2018 has seen a high level of oil price volatility as Brent oil price fluctuated from lows of $62 to well above $70.
Oil demand has touched all time high; close to 100 mio. barrels per day. As growth in China and India continue to increase, so does their demand for oil.
However, production in the U.S. is on the rise, potentially offsetting the 1.8 mio. barrels per day which OPEC and a row of non-OPEC oil producers have taken off the market in accordance with the current oil production cut deal.
Just as the geopolitical risk premium over North Korea fades, tensions between huge oil producers Saudi Arabia and Iran flare up. A potential trade war between the U.S. and China also looms and could spur some additional oil price volatility.
Please note that the forecast is the AVERAGE price per quarter. Thus, prices during the quarter will likely be both higher and lower.