Barclays: Risks to oil price forecasts skewed higher

Barclays said that given the unfolding Middle East situation and demand response to higher prices, risks to its oil price forecasts are skewed higher. The bank noted that oil prices could potentially rise another 50% from current levels before markets reach an organic balance if the current situation persists. Inventory and demand indicators show prices have a long way to go before supply and demand converge. While non-OPEC supply response has been incremental so far, this could change in coming months due to lags.