Insight

Oil Price: How Low Can It Go?

This report is currently unavailable

This report is currently unavailable

Get this Insight as part of a subscription

Enquire about subscriptions

Already have a subscription? Sign In

Further information

Pay by Invoice or Credit Card FAQs

Contact us

Submit your details to receive further information about this report.

  • An error has occurred while getting captcha image
For details on how your data is used and stored, see our Privacy Notice.
 

Report summary

Oil price volatility returned with a vengeance in October. A combination of factors triggered a decline in oil prices of about $15 per barrel to $85 per barrel for Brent. If the market nerves are warranted, and oil demand growth slumps significantly in 2015, oil prices could fall further. In this insight, we explore the price decline and how low prices could go through US tight oil and probable development break even price analysis.

What's included

This report contains

  • Document

    Oil Price: How Low Can It Go?

    PDF 290.02 KB

Table of contents

    • Fading oil demand growth in 2014 highlights the risk for oil prices
    • Global supply outages have recently offset growth in US tight oil What lies ahead?
    • US role as driver of non-OPEC production growth explains the significance of tight oil breakeven prices
      • Chart 4 - US tight oil new development volumes by breakeven (SWTI)
    • New developments around the world help provide a floor for prices over the medium to long term
  • Conclusion

Tables and charts

This report includes 5 images and tables including:

Images

  • Chart 1 - Change in oil supply/demand forecast for 2014
  • Chart 2 - US tight oil growth keeping pace with rise in losses
  • Chart 3 - Non-OPEC oil/NGL supply growth by key country
  • Chart 5 - Conventional new development volumes by breakeven ($Brent, not $WTI as in the US tight oil illustration)
  • Oil Price: How Low Can It Go?: Image 4

Questions about this report?

  • Europe:
    +44 131 243 4699
  • Americas:
    +1 713 470 1900
  • Asia Pacific:
    +61 2 8224 8898