Global oil and natural gas prices are expected to remain volatile again in 2017, but fluctuate within the $40-60 per barrel range, Moody’s Investors Service said in a press release on Tuesday.
“The rating agency’s oil and natural gas price estimates — within a medium-term oil price band of $40-$60/bbl for both Brent and West Texas Intermediate (WTI) crude globally and in North America — remain unchanged for 2017-19 from its November 2016 update,” the release stated. “Moody’s expects prices to remain volatile within this band.” In North America, the incoming Trump administration is expected to prioritize domestic oil and coal production, benefiting energy infrastructure projects in the short-term. Russia’s agreement to cut oil production is unlikely to hurt its oil companies, but Latin American companies will continue to face funding risk for several years due to tight market conditions, according to Moody’s. The oilfield services and drilling sector will likely be constrained globally by weak demand, overcapacity and high debt levels, the release also said.