The investment bank cut both the Brent and WTI price forecasts for 2019:

Bloomberg with the headlines and a little more now:

"We expect that the oil market will balance at a lower marginal cost in 2019 given:

(1) higher inventory levels to start the year,

(2) the persistent beat in 2018 shale production growth amidst little observed cost inflation,

(3) weaker than previously expected demand growth expectations (even at our above consensus forecasts) and

(4) increased low-cost production capacity."

Says price levels and term structure remain undervalued relative to fundamentals


  • sees Brent averaging $62.50/bbl in 2019 (from previous forecast of $70/bbl)
  • WTI to average $55.50/bbl ( $64.50/bbl)
  • Leaves 2020 unchanged