Deloitte’s Resource Evaluation & Advisory Group said in a price forecast Thursday that considering price growth over the last two quarters, they anticipate West Texas Intermediate to average $55 US a barrel.
As of Jan. 3, 2018 the price of oil was at $60.40, up from 2016’s average of $43.15 US/bbl.
OPEC’s agreement to extend production cuts to the end of 2018 is expected to strengthen prices.
Price recovery was also seen in the fourth quarter as transportation systems resumed at full capacity.
The company also says the stable, growing prices could create a surge in drilling in 2018.
