Societe Generale increases 3Q Brent, WTI forecasts

OREANDA-NEWS. June 11, 2015. French bank Societe Generale has increased its Brent and WTI price forecasts for the third quarter of this year, and expects a rangebound market into next year.

Societe Generale expects Ice Brent to average \\$65/bl in the third quarter of 2015, an increase of \\$5/bl on its previous forecast. Nymex WTI is forecast at an average \\$60/bl in the third quarter, an increase of \\$5/bl on the bank's prior expectation. Societe Generale has also increased its forecast for WTI in the fourth quarter, by \\$1/bl to to \\$60/bl.

The bank said the global oil market is beginning to anticipate the next phase of a rebalancing. US supply has hit a plateau in the last three months, with declines expected soon, and this has helped to set a floor for crude prices. Further ahead, the bank expects increasing US supply to exert fresh downward pressure on prices, which will help establish a price ceiling.