Oil: Go West, Again

​The price of oil rallied to about USD 69 / bbl, mostly due to declining inventories. Yet the upswing carries the risk of a correction. High prices encourage a further increase in US production, a significant downward pressure. Other factors - the Forties pipeline outage and cold weather - will also ease. EH forecasts the average price of a barrel to stand at USD 62/bbl in 2018*.

(*normalised supply/demand balance)