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Days of high oil prices are over: analyst

Last Updated May 7, 2020 at 1:13 pm MST

An oil refinery is silhouetted against the setting sun April 24, 2008 in El Dorado, Kan. The cuts in the oil patch are continuing as companies adjust to lower oil prices in the wake of the pandemic. MANDATORY CREDITTHE CANADIAN PRESS/AP, Charlie Riedel

CALGARY (660 NEWS) – The oil and gas sector may rebound, but the era of high prices is now over.

That’s according to one analyst with the Jamestown Foundation and the University of Calgary’s School of Public Policy.

Sergey Sukhankin believes the prices we are seeing right now, which devastated the industry in the province, won’t last.

“I also believe the price will rebound to 50 or potentially 60 dollars per barrel in a couple of months or in a year or so.”

Over the past couple months, the price for oil has seen dramatic shifts with West Texas Intermediate trading in the negatives just a couple weeks ago.

RELATED: Oil price plummet; WCS reaches below zero 

While Sukhankin expects prices to rise he’s cautious more instability could be on the horizon.

“This dispute between Russia and Saudi Arabia and Russia and OPEC is far away from being finished. In many ways, this situation might reoccur in the future.”

Russia and OPEC’s trade dispute, paired with the pandemic resulted in prices for North American oil to go into the negatives.

The drop in oil prices had led many Calgary-based companies including Suncor, Enbridge and Husky to cut their capital spending as they’ve reported billions of dollars in losses.