Analysts are bullish on oil according to a Wall Street Journal survey of 15 investment banks.
The latest monthly survey has analysts predicting Brent oil will average $56 per barrel in 2017, and WTI $55, both up a dollar from the previous month's survey. This is the first increase in this estimate in five months, showing that the sentiment on oil is changing - for the better. Standard Chartered, a UK multinational bank, was the most bullish, forecasting oil to rise to the high $60s in 2017.
What's holding the oil price estimate average below $60? The main reasons seem to be OPEC compliance and US shale production. Specifically, analysts wonder about the intensity at which it will rebound.
According to the US Energy Information Administration (NYSEMKT:EIA), US Shale output is already up 400,000bpd since September 2016. The EIA sits at the same estimate as the investments banks, expecting Brent to average at $56, but not until 2018.
So although the timing and intensity of the increase varies between sources, there at least is agreement that oil prices will rise. As for TAG Oil, we continue to focus on growth through acquisitions, efficiency and as always, creating shareholder value.
To read the OilPrice.com article on why everyone is bullish on oil, with a link to the WSJ survey, click here.