The recent rise for oil prices may be coming to an end.
That’s according to Andrew Botterill, Partner with Deloitte’s Resource Evaluation and Advisory group, who released their second quarter price forecast on Wednesday.
He tells Mix News everything is great right now, however, this is usually when prices peak each year.
“We’re at the peak of where we are in June and July and I think we’re going to see things soften off in the fall, which is quite typical.”
As of Wednesday, Canadian oil prices were hovering over $74 US a barrel. Botterill believes prices will drop down to $62 US a barrel.
“I don’t think it’s going to be quick, I think it’s something we’re going to slowly see and a build into 2019, so I don’t think it’s going to be a big surprise for producers.”
He adds the Syncrude outage is one of the big reasons for the increase in prices since supply is down and demand is still high.
“There have been some short-term blips and I think that’s part of the reason why the strength is where it is today and in the last few weeks, that’s a significant amount of production that’s not there.”
As for 2019, Deloitte is predicting prices to hover around $65 US a barrel.