Oil prices are expected to hover around $60 U.S. a barrel for the rest of the year.
That’s according to Andrew Botterill, Partner with Deloitte’s Resource Evaluation and Advisory group, who released its first-quarter price forecast on Tuesday.
He tells Mix News there are a lot of factors leading towards a rejuvenated sector.
“We’re seeing really firm global demand, we’re seeing OPEC cuts continuing to stay and really a belief in the system that the value of the barrel is significantly higher now.”
Botterill says it’s been a few years since they’ve had an outlook this optimistic.
He adds the price could also continue to rise if the country focuses on its pipelines.
The price of oil on each barrel that would be transported through the Trans Mountain Pipeline could add another $5 – $10 in value.
“Not every barrel of oil is going to be able to get to the coast but for those barrels that can you can see some significant price increases just being able to access those international markets and having our crude oil compete with those of Europe, Middle East, and Southeast Asia.”
The optimism in the oil market isn’t the same for natural gas.
Due to an overabundance of supply in the U.S., the sector is expected to have a rough year.
“We’re seeing quite a depression on Canadian natural gas prices and that’s causing a difference of almost a dollar when you look at U.S. prices.”
Right now, AECO (Canadian) prices are expected around $1.90/Mcf while Henry Hub (American) will be around $2.80/Mcf.