Citigroup lowers its 5-year ahead oil price band to USD 40 - USD 60 (from a previous range of USD 40 - USD 65)

In our new medium-term oil balances, our base case prices are revised down slightly; a “smooth sailing” base scenario sees $40-55 levels for near-dated WTI over 2018-2020, as limited shale growth is needed given returning output after the OPEC/non-OPEC cuts end, competing with OPEC expansion plans to 2020. 2020-2022 could see prices rising to $60 as already-sanctioned non-OPEC crude volumes tail off, unless more projects are greenlit, or shale outperforms.

 

17 Aug 2017 - 11:15- EnergyEconomic Commentary- Source: Citi

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