The Australian
21 June, 2017
Macquarie has lowered its Brent crude oil price targets by between 7 and 13 per cent amid an “era of easy oil supply to 2020”,
The broker has Brent averaging $US54.15 in 2H17, $US49.33 for 2018, $US52.75 for 2019 and $US65 for the long term.
“Our analyses indicates there will be too much oil being produced, loaded, and marketed around the world until 2020,” Macquarie analysts say.
Investors will be watching for any energy sector downgrades from Macquarie on the back of this call.
Also, note that Brent crude has fallen 22 per cent from a 2.5-year high of $US58.37 to a seven-month low of $US45.42 last night.
The oil price has dived 17 per cent in the past three weeks alone.
Capitulations by analysts can often mark price bottoms.
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