Most Major Oil Companies CEOs expect oil prices to increase slightly over the coming years. However, they don’t expect any sharp increase in oil prices over the coming years which if happened it will not last for long.
Looking at various expectations/forecasts for the state of oil market and oil price direction from Major Oil Companies CEOs, we see that most CEOs expect oil prices to remain in a range between $55/bbl to $70/bbl in the coming years. The overall outlook for oil market is positive, but there will be a slow improvement trend going forward.
The overall expected oil price level by Major Oil Companies’ CEOs seems to be is realistic and inline with market fundamentals given the various market parameters which play a major role in limiting any sharp spikes in oil prices such as the growth in U.S. crude oil production and renewed supply glut concerns.
The above price level expected by Major Oil Companies’ CEOs also supports the fact that the recent sharp uptick in oil prices -where oil price almost touched $80/bbl- was artificially driven by OPEC’s members and does not represent oil market fundamentals, and that is why oil price correction is taking place right now.
Where Oil Price Will Be for The Rest of 2018?
Based on Major Oil Companies’ CEOs comments, for the rest of 2018, oil prices would remain in a range $55/bbl to $70/bbl. Such price level is best for everyone as it reduces the risks of another price collapse due to the return of supply glut.
