WTI Crude
48.61
Brent Crude
50.78
Natural Gas
3.24

Outlook is for $57 oil prices by year-end

Facebooktwitterlinkedininstagrammail

Crude prices have rebounded significantly after falling to 13-year lows of around $26 a barrel in February 2016.

Crude prices are expected to continue following that path — even if it’s not a straight line — in 2017, according to Stratas Advisors, a Hart Energy company.

John Paisie, Stratas’ executive vice president, told those gathered Wednesday at Midland Country Club for Hart Energy’s Special Briefing: Permian Outlook, that prices should end the year at about $57 a barrel.

 But there are strings attached to his company’s prediction: Prices will rise to that level if shale oil production doesn’t come back too fast, he said.

“Shale production could rise about 700,000 barrels” and not harm the market, Paisie said.

 While production from the Permian Basin has risen — it never declined during the downturn — other shale basins continue to lag, he said.
 That forecast comes as West Texas Intermediate prices have retreated from $54 a barrel to about $47 a barrel. Paisie attributed part of that decline to the rapid rebound in U.S. shale production, primarily in the Permian.

Other reasons for the decline include a record number of long positions in the market, bearish words from members of the Organization of Petroleum Exporting Countries, record levels of crude inventories and lagging demand in the U.S., specifically for gasoline.

CLICK HERE TO READ THE FULL ARTICLE BY THE PUBLISHER


Written by Mella McEwen for MySanAntonio.com

News Article Email Sign-Up
Sending

Facebooktwitterlinkedininstagrammail