rss icon Subscribe
desktop mobile

Wells Fargo Calls $100 Oil a 'Pipe Dream'

Image: Organization of the Petroleum Exporting Countries

By Aiswarya Lakshmi

USD 100 per barrel oil is but a "pipe dream," Wells Fargo said in a new investor note, reports MarketWatch.

The report quoted Wells Fargo's John LaForge saying that he's doesn't expect oil prices to climb anywhere near $100 a barrel over the next few years.
Barrels price will bounce between $30 and $60 in the coming years, according to top bank's diagnosis.
At the $40-$50 price range, crude prices will likely crater, LeForge said, "but [oil producers] are having a hard time restraining themselves from producing."
"We continue to hear that big cutbacks are on the cusp of happening," he said. "The evidence, however, implies otherwise. And the longer oil prices remain low and range-bound, the harder it will be for prices to bounced above $60-as production costs have dropped significantly since 2014, which keeps more producers in the game."
Shale production has caused American output to stand higher than it did in 2014, before the oil price crisis began. Wells Fargo data shows current production at 15.5 million barrels per day, compared to 14 million bpd three years ago.
An $80 ceiling is also likely unattainable, LaForge said, "until the world's oil producers stop overproducing."

Jun 18, 2017

 

Energy

Norway's Labour Calls for Debate on Oil Tax Regime

© thierry / Adobe Stock

Norway should review its generous tax regime on oil drilling because of climate change

Global FLNG Capex to Total USD 37.6bln

Global Expenditure on FLNG Facilities by Region, 2012-2023. Graph: Douglas-Westwood

Global Capex on FLNG facilities is set to grow at a 9% CAGR over the 2018-2023 period

Asia Tankers-VLCC Rates to Remain Low on Tonnage Glut

File Image: A VLCC Underway in the Suez Canala (CREDIT: Suez Canal)

Around 90 ships charter free for early September loading.   Freight rates for very large crude

Finance

Brazil Court Freezes Petrobras's TermoBahia Sale

A Brazilian federal court on Monday temporarily halted the sale by Petroleo Brasileiro SA of its 50 percent stake in thermal power station operator TermoBahia to Total Brasil E &

Hyundai Merchant Marine, BlackRock in Investment Talks

(File photo: Hyundai Merchant Marine)

South Korean shipper Hyundai Merchant Marine Co Ltd (HMM) is in talks with BlackRock Inc about a

Hafnia Says Product Tanker Market Weakened

Photo: Hafnia Tankers

The overall product tanker market weakened further during the second quarter of 2017

Maritime Apps