01NOV2019 - NEWS - Oil prices face pressure as global economy slows

Oil prices are likely to be pressured this year and next as low demand from a slowing global economy and a surge in U.S. shale output offset support from OPEC production cuts and Middle East supply risks, a Reuters survey shows.

The poll of 51 economists and analysts forecast Brent crude LCOc1 would average $64.16 a barrel in 2019 and $62.38 next year. This is compared to the previous month’s $65.19 projection for 2019 and $63.56 for 2020, and an average oil price so far this year of $64.23.

The 2019 outlook for West Texas Intermediate crude futures CLc1 was slightly reduced to $57.18 per barrel from last month’s $57.96 forecast, while the 2020 projection was at $56.98 against $58.02 in September. WTI has averaged $56.78 this year.

“It continues to be a battle between supply fears and demand fears,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank AG.

“At the moment, fears from the demand side dominate the scene, notwithstanding the troublesome attacks on Saudi Arabian oil facilities and attacks on oil tankers.”

Brent posted its biggest one-day jump in 30 years on Sept. 16 after an attack on Saudi oil facilities, but has since retreated more than 15%.