Despite the current sweet spot in the energy market, there are reasons to remain skeptical about future developments. While higher oil prices will allow shale companies to ramp up production, participants in the oil deal will be tempted to deviate from quotas to improve their battered finances, potentially limiting any upswing in crude prices. Moreover, increased supplies of coking and thermal coal, coupled with reduced demand from China, will cloud the outlook for coal. As a result, analysts surveyed by FocusEconomics expect energy commodities prices to decline 3.0% year-on-year in Q4 2018.
