Capital Perspectives: Energy Outlook 2016 (Oil & Gas Financial Journal)
Excerpted from Oil & Gas Financial Journal.
By Bryan Frederickson and Eric Swanson
NEARLY A YEAR and a half after oil prices began their march from over $100 per barrel to current levels, no confident consensus has emerged on when the market should expect a recovery or even what such a recovery might entail. As demand growth has softened, supply and demand factors set the stage for near-term uncertainty and a potentially prolonged period of low prices.
Energy traders and other finance industry professionals have generally declined to call the “bottom” for commodity prices or to speculate about when conditions will improve, as reflected in a forward oil curve that is essentially flat. It is within this environment that oil and gas producers and the companies that provide them with services and products must evaluate operating plans, as well as financial and strategic options.
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