Although analysts expect OPEC to decide to cut output, they revised their estimates for the WTI average price to $ 67.45 in 2019, as surging supplies and the prospect of unclear demand are expected to limit rising oil prices, a Reuters poll from 38 analysts and economists showed on Friday.
Experts now expect WTI Crude prices to average $ 67.45 next year, down from $ 70.15 in a previous poll in late October, when analysts widely predicted US sanctions on Iranian oil to support prices next year.
WTI Crude oil prices averaged $ 66.40 so far in 2018.
This month's poll found that analysts and economists also saw lower average prices for Brent Crude next year – at $ 74.50 a barrel, down from a projection of $ 76.88 in October. For this year, experts see Brent prices averaging $ 73.20, in line with the average price of $ 73 so far in 2018.
Half of analysts and experts who took part in the Reuters poll this month and last – 16 of 32 – revised down their estimated average prices for Brent Crude next year.
The lowest Brent projection for 2019 comes from Citi, at $ 57, while Raymond James and ABN Amro have the highest estimate at $ 90.
Brent Crude is expected to average $ 75.50 a barrel in 2019, according to last week's Platts S & P Global survey of 11 oil banks and brokers, who saw OPEC cut oil production by at least 1 million bpd and oil demand growth is still healthy despite signs of weakness.
In a Reuters poll on Friday, experts factored in reducing the lower limit of the demand growth range for 2019 in their oil price estimates, apart from rising supplies from the US and recovery in production in Libya and Nigeria. Participants in the poll estimate that oil demand will grow between 900,000 bpd and 1.5 million bpd next year, compared with a growth range of 1.1 million bpd to 1.5 million bpd estimated in the October poll.
By Tsvetana Paraskova for Oilprice.com
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