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Oil Price Outlook

Delivered February 3, 2020. Contributor: Alexis Z.

Goals

Determine the outlook for oil prices in the next twelve months as well as what is driving the price changes.

Early Findings

Overall Outlook

  • For WTI Crude Oil, the overall outlook is that prices will increase through 2020 and 2021.

Positive Drivers

  • Overall positive expectations for the global economy going into 2020 are positively affecting the crude oil outlook for the next 12 months.
  • The announcement of a potential first phase of a trade deal between the US and China is positively affecting crude oil price outlook.
  • The production cuts announced by OPEC and partner countries in December 2019 are putting upward pressure on crude oil prices.

Negative Drivers

  • The outbreak of the coronavirus in China is putting downward pressure on prices.
  • Building oil inventory in the US is depressing prices.

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