Crude oil prices gained about 85¢ on the New York and London markets July 6 pending release of the weekly US crude and products inventory report, which was delayed a day later than normal because of the July 4 holiday.
A Wall Street Journal survey of 14 investment banks sees Brent crude averaging $57/bbl for 2017, which was unchanged from WSJ’s May survey results. The bankers expect US light, sweet crude will average $55/bbl in 2017.
Separately, Raymond James & Associates Inc. raised its 2017 oil price forecasts. RJA’s price forecast remain higher than forecast from many other analysts.
“Specifically, our 2017 forecast for West Texas Intermediate increased to $80/bbl from $75/bbl and Brent increased to $83/bbl from $79/bbl—marking the cyclical peak of the oil recovery,” RJA said in a July 5 note.
RJA said its 2018 forecast is that WTI will average $75/bbl and Brent will average $80/bbl.
“Our previous price forecast was considerably more bullish than street consensus, and as a result our revised forecast was even more so,” RJA said.
The natural gas contract for August gained 2¢ to close at a rounded $2.79/MMbtu. The Henry Hub gas price was $2.75/MMbtu, down 7¢ on July 6.
Heating oil for August delivery gained 2.5¢ to a rounded $1.47/gal. The price for reformulated gasoline stock for oxygenates blending for August was up less than a penny to a rounded $1.43/gal.
The September Brent crude contract on London’s ICE gained 84¢ on July 6 to $48.80/bbl. The contract for October rose 83¢ to $49.40/bbl. The July gas oil contract for July 6 was $417.25/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes was $44.35/bbl on July 6, up 1¢.
Contact Paula Dittrick at email@example.com.