$70 Oil At End of Decade
More Food For Thought....... 20 Oct 2015 National Post - (Latest Edition) Crude oil prices not expected to return to US$70 a barrel until end of decade ZoomSharePrintListenTranslate Thanks to the continued glut of oil supply, forecasters at Moodys Investors Service do not expect crude prices to return to the US$ 70 per barrel level until the end of the decade. The oil rout, which has caused thousands of layoffs in Alberta as West Texas Intermediate benchmark crude has fallen from US$ 100 per barrel last summer to US$ 47.26 per barrel on Friday, is expected to continue through 2016 and 2017, Moodys said in a report released Monday. Moodys analysts have lowered their estimates for oil prices and now say WTI will average US$ 48 per barrel throughout 2016, rising to US $55 per barrel in 2017. Eventually, oil supply will fall and the market will balance at average WTI prices of uS$70 per barrel but that will happen only at the end of the decade. This price would support development of the worlds most expensive oil from oilsands and deepwater resources in an environment where development costs are lower than in recent years, the Moodys report said. Geoffrey Morgan, Financial Post