Oil prices are looking more like the $50 to $ 60 price range may be the norm for 2017.
Saudi Arabia, the world’s largest oil producer, is following through on its plan to lead OPEC to lower production after the November decision to scale back supply, by meeting with their customers for possible cuts ranging from three to seven per cent.
This activity by OPEC and other oil producing nations, notably Russia, has sent crude prices well over U.S. $50 per barrel and has certainly eased some of the pressure on Alberta’s economy and oil producers.
However, we continue to reiterate that OPEC’s reputation of cheating on production, as witnessed in previously announced production cuts, has analysts hesitant to believe the current scenario would be any different.
Oil in morning trade is over U.S. $53 per barrel.