European Commission sharply decreases oil prices forecast

  04 February 2016    Read: 1062
European Commission sharply decreases oil prices forecast
Given the further decline of oil prices in January, the European Commission decreased its oil prices assumption to $35.8 per barrel in 2016 and to $42.5 per barrel in 2017, its Winter 2016 Forecast published on Feb.4. said.
In European Commission’s Autumn 2015 Forecast, Brent oil was projected to be on average $54.2 per barrel in 2016, and $58.8 per barrel in 2017.

“Uncertainty around this technical projection for the oil price remains high in the short and medium run, due to geopolitical tensions, the outlook for an increase in the oil supply that is expected to come from Iran following the removal of sanctions in mid-January, and the response of oil producers with break-even costs above current spot prices,” the report said.

Brent oil price (April futures) hit $35.22 per barrel Feb. 4.

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