Photo by: Bloomberg
As the oil and gas industry continues to face a myriad of headwinds going into the new year, UK-based boutique advisory firm SP Angel believes 2016 will mark a transitional 12 months for the industry with a rising oil price.
SP Angel, which is currently finalising its oil price outlook and expectations, noted on Tuesday in a commentary at the year ahead that a rise from the current unsustainable oil price was inevitable, given the expected supply attrition from natural decline and lack of investment over the next two years. The real question was when the oil price would increase and from what level.
SP Angel predicted that oil prices would likely push beyond $100/bl, but noted that the timing of the upward swing remained uncertain and that there was concern over the “havoc” the low oil price would cause in the interim.