collected by :Maolly Tony
referring to Societe Generale SA revised its price forecast “moderately higher” than a previous forecast, though its estimate remains more moderate than Tudor’s.
Long-Term Outlook“Super-high oil prices financed the oil industry to seek new supply,” Paul Sankey, senior oil and gas analyst at Wolfe Research LLC, said in a note to clients.
The French bank expects OPEC will continue to extend production cuts into the second half of the year, according to a note led by Michael Haigh.
“The industry has responded aggressively, so that the long-term outlook for oil prices is lower.”Still, analysts remain relatively positive in their comments.
For the second half of 2017, Tudor reduced its price estimate by $10 to $62.50.
as mentioned in OPEC’s supply cuts are providing a windfall for producers of heavy crude from Western Canada and the Gulf of Mexico.
Prices for Western Canadian Select and Mars grades have strengthened relative to benchmark West Texas Intermediate since OPEC began implementing its reductions this year.
“We are seeing a real hunger for the heavy oil,” Bill McCaffrey, chief executive officer of MEG Energy Corp., a Canadian oil sands producer, said in a Feb. 9 conference call.
Western Canadian Select was $12.70 a barrel below West Texas Intermediate Wednesday, according to data compiled by Bloomberg, the narrowest discount since June.
That’s quite a difference in cash flow compared with what they had before.”The brighter outlook for heavy crude has prompted some oil sands producers to resume expansion programs.