Prices for Brent and WTI crude oil rallied in recent weeks on the back of resilient global growth, which is boosting demand, and signs that the oil cut deal could be extended well into 2018. That said, the FocusEconomics Consensus Forecast for the energy market was upgraded only slightly this month as fundamentals for a sustained recovery in prices remain weak. Any sharp rise in oil prices should be offset by higher demand from shale producers, particularly in the United States. Moreover, most participants in the oil cut accord are still facing considerable economic imbalances and could therefore be tempted to deviate from the deal.
