A recent Dallas Fed Energy Survey in conjunction with executives from 142 oil and gas firms has predicted the destination of the West Texas Intermediate (WTI) oil price will be at the end of next year.
According to the survey, which was released earlier this week, just under 35 percent of participants said they expected WTI to be between $50 per barrel and $54.99 per barrel at the end of 2021. Just under 30 percent thought WTI would be worth between 45 per barrel and $44.99 per barrel at the end of next year and just under 15 percent thought it would be worth between $55 per barrel and $59.99 per barrel.
Read also: Inside 9 Epic Space Discoveries You Probably Missed in 2020
Around 13 percent of respondents placed WTI at under $45 per barrel at the end of 2021. Just over five percent of participants expected WTI to land between $60 per barrel and $64.99 per barrel and under five percent thought WTI would be worth more than $65 per barrel at the end of next year.
Participants gave their projections during the survey collection period of December 9 to 17. WTI prices averaged $47.09 per barrel during the period. According to the executives responding to the latest Dallas Fed Energy Survey, activity in the oil and gas sector jumped in the fourth quarter.
The business activity index, which is described as the survey’s broadest measure of conditions facing 11th District energy firms rose from -6.6 in the third quarter to 18.5 in the fourth quarter.
This is the first positive reading for the business activity index since the fourth quarter of 2019, the latest Dallas Fed Energy Survey outlined. The increase was said to have been driven by both exploration and production and oilfield services firms.
The Dallas Fed promotes a strong financial system and healthy economy in the Eleventh Federal Reserve District, which includes Texas, northern Louisiana and southern New Mexico, the organisation’s website notes.
