Executive Summary: Oil market outlook

November 2016

Global oil prices are expected to remain volatile in the run-up to the OPEC meeting scheduled for 30 November. Growing market scepticism that the cartel will reach a deal to cut or freeze its oil production will continue to weigh on prices. Without an output cut, oil prices are not expected to be significantly boosted. A simple production freeze will receive a muted response.

The average Brent and WTI crude front-month futures prices have each dropped by around $5 per barrel so far in November compared with last month, to $46.2/bbl and $44.9/bbl respectively. GGA expects Brent to average around $44/bbl in 2016 compared with $53.6/bbl last year.