Crude oil prices will shift higher in the near future, says energy advisory firm FirstEnergy Capital, after dropping from over $50 per barrel in June to $42.34 per barrel at the time of writing.
“Another anomalous jump in U.S. crude oil imports provided another counter seasonal build in U.S. crude oil inventories,” said oil and gas analysts at FirstEnergy in brief research note sent to Rigzone. “The speed at which those crude oil inventories fall may surprise some,” they added.
“Crude oil inventories should be shifting lower, and prices higher, with the next few reports,” FirstEnergy concluded.
Crude prices hit highs of well over $100 per barrel in 2014, but have since fallen by over 50 percent. Following the drop in value, Bloomberg reported that oil and gas giants like Exxon Mobil Corp., Royal Dutch Shell Plc have seen their debt double to a combined $138 billion, spurring concerns they’ll need to keep cutting capital spending.
Worldwide investment in the development of oil and gas resources from 2015 to 2020 is expected to be 22 percent, or $740 billion, lower than anticipated before prices plunged in 2014, according to Wood Mackenzie.
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