Executive Summary: Oil market outlook
Oil prices are under pressure as a result of ongoing concerns regarding oversupply and weakening economies of key oil consuming countries. However, recent comments from Saudi Arabia – that it would work with OPEC and non-OPEC members to help stabilise oil markets – have provided some support to prices. An informal meeting of OPEC and non-OPEC members is scheduled for the end of September in Algeria on the sidelines of the International Energy Forum.
The Brent crude front-month futures price has averaged $45 per barrel so far in August, which is a 3.2% fall from July’s average. The front-month price for WTI has seen a month-on-month decline of 4.9%, to $42.6/bbl. GGA expects the Brent price to be rangebound at $40-50/bbl in Q3 2016.