A new report suggests oil and gas prices will rise for the rest of 2016.
According to Deloitte, a reduction in global oil production, while demand remains strong, is the big reason why it believes oil prices will average above $50 U.S. a barrel for the remainder of the year.
“It’s going to hover between, you know, where it is now and $55 kind of throughout the rest of the year. We’ll have some volatility, some ups and downs throughout that, but we’re seeing a lot less risk of downside than we saw in the 18 months previous to that,” REA Group Partner Andrew Botterill said.
Natural gas prices are also expected to moderate somewhat over the rest of 2016, but over supply concerns are still a major worry.
