BMI Research Group said within its commodity report this month that oil prices had ‘strengthened faster than anticipated’ and that it has upgraded its 2020 forecast to $80-$90 barrel range.
The report said that despite BMI taking a fundamental “bullish” outlook it felt that due to strengthening prices its outlook on oil prices had to alter “to reflect this higher base”.
BMI now forecast that it6 expects the 2018 oil price to average around $73 a barrel instead of its previous forecast of $67.
In 2019, BMI say they expect the oil price to have surged to $77 a barrel as opposed to $75 from its original report.
The commodities section of the report concluded that, on current data, the oil price could be around $80-$90 barrel range.
BMI Research Group said that these new forecasts were down to “continuing demand growth” and “underinvestment in new supply”.
The report concluded by saying that the “balance of risk” lay firmly “to the upside”.