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Oil price to average $52 in 2017

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Brent price to average $44 in 2016

Brent crude oil prices are forecast to average $44/b in 2016 and $52/b in 2017, according to the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook (STEO) published on July 12. West Texas Intermediate (WTI) crude oil prices are forecast to be the same as Brent in 2016 and in 2017.

However, the current values of futures and options contracts suggest high uncertainty in the price outlook. For example, EIA’s forecast for the average WTI price in October 2016 of $48/b should be considered in the context of Nymex contract values for October 2016 delivery, the EIA said.

Contracts traded during the five-day period ending July 7 suggest the market expects WTI prices could range from $35/b to $67/b (at the 95% confidence interval) in October 2016.

Whether this development would be positive for the HeavyLift and Project Cargo sector is hard to tell at this stage. However, a higher oil price usually means that investments in Oil & Gas projects are more likely to take place then when the oil price is lower. HeavyLift.News will continue to keep a close eye out for the developments as this is too much related to the industry.

The Henry Hub spot prices are forecast to average $2.36/million British thermal units (MMBtu) in 2016 and $2.95/MMBtu in 2017, compared with an average of $2.63/MMBtu in 2015.

 

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