What Price Will WTI Oil Be at End-2021?

What Price Will WTI Oil Be at End-2021?
Here's what oil and gas executives think the price of West Texas Intermediate (WTI) crude oil will be at the end of 2021.

The price of West Texas Intermediate (WTI) crude oil at the end of 2021 will be $69.71 per barrel.

That’s according to the latest average from the Dallas Fed energy survey, which asked executives from 150 oil and gas firms what they expected the price of WTI to be at the end of the year. The low forecast of the survey came in at $49 per barrel and the high forecast was $85 per barrel. The survey was conducted from June 9 to June 17. WTI spot prices during the period averaged $71.05 per barrel.

Dallas Fed’s previous energy survey, which was conducted from March 10 to March 18, resulted in a WTI average price of $61.13 per barrel, with a low forecast of $45 per barrel and a high forecast of $85 per barrel. WTI spot prices during this survey, which included answers from 152 oil and gas firm executives, averaged $64.39 per barrel.

The latest version of the Dallas Fed energy survey also asked participants if they believed there will be a global crude oil supply gap in the next two to four years. Seventy-six percent of executives said they believed there would be. The majority of executives - 83 percent – also revealed that they don’t have investments in wind and/or solar. Seven percent noted that they already have an investment in the technologies and nine percent said they are planning to make an investment by 2025.

The Dallas Fed conducts a quarterly survey of around 200 oil and gas firms located or headquartered in the Eleventh District - Texas, southern New Mexico, and northern Louisiana - which operate regionally, nationally, or internationally. According to the Dallas Fed, the information collected is a valuable component of economic analysis and serves as input for Federal Open Market Committee monetary policy deliberations.

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