TD expert tells Canadian oil producers to brace for a second shock — SHAWN McCARTHY - OTTAWA - Published Friday, Jan. 23 2015 — The Globe and Mail Canada’s oil producers are being told to brace for more bad news, even as they struggle to cope with a collapse that has driven prices down by nearly 60 per cent from their peak last June. With global production continuing to exceed demand, crude prices are set to head lower and West Texas Intermediate should average just $41 (U.S.) a barrel in the first half of this year, Toronto-Dominion Bank economist Dina Ignjatovic said in a report Friday. She expects WTI prices to sink below $40 as bulging inventories weigh on the market in the next few months. “Oil prices are likely to remain subdued through the first half of the year, and follow more of a U-shaped recovery pattern than the V-shaped pattern that typically follows such sharp price declines,” she wrote. The TD economist expects the U.S. benchmark to average just $53 in the second half of the year, and $65 next year. Crude prices fell another 70 cents Friday to $45.60 and lost more than $3 on the week amid further evidence that global crude stocks are growing rapidly. The United States Energy Information Administration reported this week that inventories are at an 80-year high for this time of year. ... >> READ MORE ... theglobeandmail/report-on-business/industry-news/energy-and-resources/td-expert-tells-canadian-oil-producers-to-brace-for-a-second-shock/article22611335/
Posted on: Mon, 26 Jan 2015 07:02:11 +0000
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