Kazakh National Wealth Fund expects oil prices to rise in 2017
Baku, Azerbaijan, Jan. 13
By Elena Kosolapova – Trend:
Kazakhstan National Wealth Fund Samruk-Kazyna expects oil prices to increase by almost $10 per barrel in 2017 as compared to 2016.
“Oil price recovery will remain moderate this year and our central scenario suggests oil price to average $50-52 per barrel in 2017,” Samruk-Kazyna said in its 2017 oil market outlook, published Jan. 13.
Brent and WTI average prices hit $42.66 per barrel and $42.35 per barrel in 2016, respectively.
Samruk-Kazyna expects volatility in oil prices to remain high in 2017 due to risks coming from OPEC and non-OPEC actions, slower-than-expected oil demand growth and geopolitical factors.
The fund forecasts that any reduction in OPEC’s oil output within the agreement reached on Nov. 30 will be compensated by the possible increase in output of the US shale producers.
“A rebound in the US shale output is likely to limit oil price increase,” Samruk-Kazyna said.
The fund noted that US shale output is already on track to sequentially grow starting from 1Q17.
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