Market Insights

January 5, 2016 • Posted in Market Insights

Week of January 4, 2016

  • Crude prices fell slightly vs. the prior week but rallied on Thursday on speculation that Iran could take longer to ramp up production following the removal of sanctions.
  • IHS has been conservative in forecasting lower prices.
  • Comments last week from a reporter for Canada’s Financial Post magazine highlighted predictions for 2016:
    • “Goldman Sachs analysts are…predicting prices could touch US $20 a barrel in 2016 — and potentially stay low for the next 15 years.”“The fact is that oil and gas forecasting is a crap shoot, that too many people become invested in their own views to see contrarian trends, and that reality changes all the time.”
    • “That’s why everyone missed the current crash, and why predictions that oil is down and out should be regarded with skepticism.”
    • In May, 2008, Goldman Sachs analysts were forecasting that oil would reach $200 a barrel within two years

 

WTI Crude Oil & Brent Crude Oil 01042016

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