Rising oil production from the United States, Nigeria and Libya will cap gains in global prices over the coming months, even though the demand for oil and derivatives in the Middle East and some Asian countries will be higher during the summer. Reduced compliance with output cuts agreed by OPEC and some non-OPEC countries will mean the market will take longer to rebalance.
The Brent crude front-month futures price has averaged around $48 per barrel so far in July, marginally higher than its June average of $47.6/bbl. Meanwhile, the WTI front-month futures price has averaged $45.7/bbl so far in July, a small increase from its $45.2/bbl average in June. GGA forecasts the price will average around $52/bbl in 2017 as a whole.
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