Ewart: Oil rally has limits, OPEC predicts sub-$100 prices for next decade

Posted: May 12, 2015 in Uncategorized

Calgary Herald

The return of $60 oil proved to be short-lived as the prospects for sustained higher prices fades.

The 25 per cent rally in oil prices since March pushed West Texas Intermediate crude above $60 US per barrel for the first time since December — for three days — last week before it retreated as drillers responded to any sign that a year-long price rout was behind them.

It’s evidence of what some analysts predict will be a “zigzag” pattern for oil prices for several years.

The benchmark U.S. crude closed down 14 cents a barrel to $59.25 on Monday as the Wall Street Journal added to the grim outlook for the industry, reporting the Organization of the Petroleum Exporting Countries does not expect oil prices to consistently trade at $100 barrel again in the next decade.

Even under its most optimistic scenario, the cartel expects crude to sell for only about $76 US a barrel in 2025, the Journal said, citing a draft of…

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