Prepare to pay more for fuel. But not that much more
GAITHERSBURG, MD--Crude oil prices, as well as gasoline, diesel, and jet fuel prices, should be higher in 2017 than they were in 2016, but perhaps not nearly as high as some bullish Wall Street banks and hedge funds might suggest.
That’s the word from the Oil Price Information Service (OPIS) in a just-released white paper on oil in 2017. (OPIS maintains the world’s biggest database of U.S. wholesale petroleum prices.)
“We’ve seen a number of predictions that 2017 could produce WTI or Brent benchmarks in the $65-to-$80 barrel range, and believe those levels are too lofty for a greatly expanded and incredibly sophisticated paper market with circuit breakers that should ensure more narrow ranges.
“OPIS does not expect any of the decade’s lows for crude or refined products to be repeated this year, although nothing can be ruled out in an environment where global recession is barely mentioned, let alone predicted, in U.S. or offshore economic analysis.
But too many oil analysts dismiss U.S. oil shale as a phenomenon, rather than an absolute game changer, and too few analysts recognize that the science of tapping shale reserves has much more in common with American manufacturing and much less in common with traditional reservoir exploitation."
For a look at the complete white paper, click here