# Oil prices lower but may see upside later in the year on inventory draws: Analysts

> Analysts said the market overreacted to OPEC's nine-month extension of output cuts to March 2018, which sent prices nearly 5% lower. Wood Mackenzie expects supply to rise about 200,000 bpd while demand grows 1.3 million bpd, and it sees Brent averaging $55 this year.

- Date: 2017-06-01 · published 2017-06-01T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/71178-oil-prices-lower-but-may-see-upside-later-in-the-year-on-inventory-draws
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Projected inventory drawdowns in the second half of 2017 suggest crude prices may recover, which would support energy costs for feed producers later in the year.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Sources

- cnbc.com: https://www.cnbc.com/2017/05/25/oil-price-decline-after-opec-output-cut-extension-an-overreaction-analyst.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.