• 1-800-526-8630U.S. (TOLL FREE)
  • 1-917-300-0470EAST COAST U.S.
  • +353-1-416-8900REST OF WORLD
Country Report Macedonia Product Image

Country Report Macedonia

  • ID: 2123793
  • January 2015
  • Region: Macedonia
  • 28 Pages
  • The Economist Intelligence Unit

The fall in the global price of oil has showed no sign of easing, and the EIU is reducing its forecast for the average price of dated Brent blend (the international benchmark) in 2015 to US$54/barrel from US$80/b.

Market fundamentals are largely unchanged from six months ago when prices first began to fall: rapid growth in shale oil production in the US, combined with OPEC's refusal to cut output, is resulting in an oversupplied market which, given the generally subdued nature of demand in the global economy, has yet to find equilibrium. The weakness of the global economy is crucial. Although we expect lower prices to boost aggregate demand, the impact will be more subdued than in the past, partly owing to continued deleveraging in the euro zone.

We now expect prices to average $42/b in the first quarter of 2015 (the cyclical low), before moving higher towards the end of the year, for an annual average of US$54/b in 2015. There are several factors that will support higher oil prices in the second half of this year. First, the Saudi budget for 2015 is predicated on an average price of US$60/b, which means some cuts to production, either alongside its OPEC partners or of a more incremental and unilateral nature, are likely around mid-year. Second, North American production growth will slow sharply as lower prices render some investments in new wells uneconomic. Third, the spread between spot prices and two-year futures has widened in recent weeks, which makes oil more attractive to traders, provided that they can access storage. Finally, OPEC meets in June and is likely to be less tolerant of prices of US$50/b or lower.

Note: Product cover images may vary from those shown

Country Report Macedonia

The EIU lowers its 2015 oil price forecast to US$54/barrel
Event
Analysis
Impact on the forecast

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

RELATED PRODUCTS

  • Country Report Sri Lanka - Product Thumbnail Image Country Report Sri Lanka

    Country Report Sri Lanka

    • Language: English
    • 20 Pages
    • Published: January 2015
    • Region: Sri Lanka
  • Country Report South Africa - Product Thumbnail Image Country Report South Africa

    Country Report South Africa

    • Language: English
    • 28 Pages
    • Published: January 2015
    • Region: Africa, South Africa
  • Country Report Equatorial Guinea - Product Thumbnail Image Country Report Equatorial Guinea

    Country Report Equatorial Guinea

    • Language: English
    • 25 Pages
    • Published: January 2015
    • Region: Equatorial Guinea, Guinea
  • Country Report United Kingdom - Product Thumbnail Image Country Report United Kingdom

    Country Report United Kingdom

    • Language: English
    • 30 Pages
    • Published: January 2015
    • Region: Great Britain, United Kingdom
  • Country Report Latvia - Product Thumbnail Image Country Report Latvia

    Country Report Latvia

    • Language: English
    • 32 Pages
    • Published: January 2015
    • Region: Latvia
  • Country Report Luxembourg - Product Thumbnail Image Country Report Luxembourg

    Country Report Luxembourg

    • Language: English
    • 25 Pages
    • Published: January 2015
    • Region: Luxembourg
  • Country Report Virgin Islands (British) - Product Thumbnail Image Country Report Virgin Islands (British)

    Country Report Virgin Islands (British)

    • Language: English
    • 17 Pages
    • Published: January 2015
    • Region: Great Britain, United Kingdom, Virgin Islands
  • Pharma and Biotech M&A Trends 2009-2014 [old name Merger & Acquisition Terms and Agreements] - Product Thumbnail Image Pharma and Biotech M&A Trends 2009-2014 [old name Merger & Acquisition Terms and Agreements]

    Pharma and Biotech M&A Trends 2009-2014 [old name Merger & Acquisition Terms and Agreements]

    • Language: English
    • 1677 Pages
    • Published: July 2014
    • Region: Global
    FROM
  • USA B2C E-Commerce Report 2012 - Product Thumbnail Image

    USA B2C E-Commerce Report 2012

    • Language: English
    • 74 Pages
    • Published: March 2012
    • Region: United States
    FROM
  • Analysis of Adidas AG - Product Thumbnail Image Analysis of Adidas AG

    Analysis of Adidas AG

    • Language: English
    • 80 Pages
    • Published: January 2015
    • Region: Global
    FROM

Our Clients

Aol, Inc. Accenture PLC. Unilever N.V. Nestle S.A. KPMG Roland Berger Strategy Consultants