Societe Generale Cuts 2017, 2018 Oil-price Forecasts Sharply

Societe Generale cut its price forecasts for both Brent and West Texas Intermediate crude on Thursday, citing higher-than-expected supply growth from the U.S., Libya and Nigeria. "Despite OPEC cuts of 1.3 [million barrels a day], with consistent overall compliance near 100% for the countries that are cutting, the stockdraws that were expected earlier in the year have failed to materialize," Michael Wittner, head of oil market research at Societe Generale, said in a note. The company lowered its 2017 Brent forecast by $4.40 to $52 a barrel. It sees $54 for 2018, down by $6 from its previous forecast. WTI , meanwhile, is forecast at $49.45 this year, down $4.35 from the previous forecast. The 2018 outlook was down $6 at $51.50 a barrel.