March 30th 2015
(Reuters) – Oil prices should stabilize in the second half of this year and rise in 2016 and 2017 as consumers respond to a period of much cheaper fuel, a Reuters poll of analysts showed on Monday.
The survey of 34 analysts predicted North Sea Brent crude would average $59.20 a barrel in 2015, up from around $55 so far this year. The forecast is up just 20 cents from the projection in last month’s Reuters survey.
“Global oil demand will surprise upwards, driven by the United States, China and emerging Asia,” said Daniela Corsini analyst for (Intesa Sanpaolo )
Brent is expected to rise to $72.10 in 2016 and $78.70 in 2017, the poll showed.
London-based consultancy Energy Aspects expects world oil demand to rise by up to 1.5 million barrels per day this year. That’s double the rate of oil demand growth seen last year, according to the International Energy Agency.
The rise in consumption appeared to be worldwide.
Increasing demand should help absorb any extra oil coming onto the market from Iran, if it can agree a nuclear deal with the West that would bring an end to sanctions.
And some analysts see demand outstripping supply.
“The global market is expected to move into supply deficit in the second half (this year), with that deficit reaching 1 million bpd in the fourth quarter.