Deloitte forecasts average $44 US per barrel this year
Posted Apr 5, 2016 2:39 pm.
This article is more than 5 years old.
Deloitte believes it won’t be long before the price of oil starts to rise.
However, spokesperson Andrew Botterill says there could be some big price swings over the next few months.
“With all the activity in OPEC it would be naive to say there isn’t going to be some volatility in the coming months, but there certainly is more confidence in the sector now than there was a couple months ago as we’re starting to see evidence of us starting to chew through some of that oversupply. But it’s going to take more time,” he says.
Deloitte expects oil prices will average $44 (US) per barrel this year and rise to just under $50 next year.
While Canadian producers will be paid less than that, the low loonie is helping to soften the economic blow. Oversupply is expected for the next year.
“That’s what’s really going to push down prices and continue them at these modest levels right now, but there is more confidence in the sector, there is more activity in people looking at buying and selling,” says Botterill.
He also expects there will be more mergers and acquisitions announcements in the energy patch in the coming months.
