File photo / reuters
Brent crude oil prices are likely to average in $50s per barrel (bbl) range in 2017, said a Gulf Intelligence survey conducted in London with 100 energy industry executives.
Asked where they saw Brent crude oil prices averaging in 2017, 72 percent said in the $50s per barrel (bbl) range. About 18 percent were more bullish and saw it average in the $60s/bbl, while 10 percent were more conservative, predicting that as it did in 2016, Brent would average in the $40s/bbl.
Brent crude oil prices have averaged in the $50s/bbl so far this year and were $56/bbl at the market close on Friday. About 63 percent of the GIQ survey audience were of the opinion that absolute Brent prices would not dip below $40/bbl while 20 percent were somewhat less optimistic choosing $30/bbl as the floor for 2017.
Around 75 percent of the executives in the room said that the Opec – non Opec Vienna 1.5 million b/d production cut agreement which commenced in January, was a result of producers feeling unsustainable economic pressure from consistently lower oil revenues, while the remaining 25 percent believed that the market share strategy deployed by Opec for the past two years had succeeded in its objective.
Meanwhile, 83% of the audience expect the current 6-month agreement to be extended beyond June of this year.
