After extensive efforts by OPEC to rein in world oil production, it appears the plan may finally be working to raise estimates of future oil prices. Georgi Kantchev reports that analysts are raising their estimates of the future price of oil. He writes:
A poll of 14 investment banks surveyed by The Wall Street Journal at the end of October predicted that Brent crude, the international benchmark, will average $54 a barrel next year, up $1 from the September survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $51 a barrel in 2018, also up a dollar from the previous survey.
The Organization of the Petroleum Exporting Countries, in concert with other big producers, has limited its production this year as part of a deal to support the market. OPEC and its allies are due to meet end of this month in Vienna to discuss an extension of their deal which is due to expire in March.
Last week, Brent crude topped $60 a barrel for the first time in more than two years after Saudi Arabia and Russia expressed support about an extension to the deal.
Read more here.