Deloitte expects oil and gas prices to stay low as oversupply continues

CALGARY - Business consultancy Deloitte says an unexpected continuation of oversupply in both oil and natural gas will mean lower prices for longer.

See Full Article

The firm is forecasting oil prices to average below US$50 a barrel for 2016 and 2017 as demand growth for oil slows before prices start a slow rise to US$80 a barrel by 2022.

It also expects natural gas prices to stay low in the near term as natural gas storage levels sit at a five-year high and Canada is facing a potentially warmer winter this year.

Deloitte is forecasting the AECO Alberta natural gas trading price to be $2.45 per thousand cubic feet for 2016, while in 2014 it averaged $4.59 per thousand cubic feet.

Longer term, the firm says Alberta's commitment to phase out coal-fired electricity generation could help boost natural gas prices once the infrastructure is in place.

North American benchmark oil was trading at under US$34 a barrel on Wednesday, while the AECO natural gas spot price was $2.40 per thousand cubic feet.



Advertisements

Latest Economic News

  • Michael Kors takes over shoemaker Jimmy Choo

    Economic CTV News
    LONDON -- American fashion brand Michael Kors has bought luxury shoemaker Jimmy Choo in a deal worth $1.35 billion (896 million pounds). Kors says that London-listed Jimmy Choo is "the ideal partner" that will be bolstered with further development of its online presence. Source
  • Smugglers offer crammed big rigs as 'VIP treatment' to U.S.

    Economic CTV News
    SAN DIEGO -- When Thomas Homan, the acting director of U.S. Immigration and Customs Enforcement, was awakened Sunday morning with news that migrants were found dead inside a sweltering tractor-trailer outside a San Antonio Walmart, his mind flashed back to 2003, when he stood at the back of a truck about 200 kilometres southeast of San Antonio that carried 19 dead migrants. Source
  • New Democrats promise to fix Insurance Corp. of B.C. amid spectre of rate hikes

    Economic CTV News
    VANCOUVER -- British Columbia's attorney general is reassuring drivers they will not be on the hook for a hike in auto-insurance rates, despite a report released Monday forecasting prices could soar as much as 30 per cent without immediate and drastic action. Source
  • Venturing Out with Arlene Dickinson and guest Dino Trevisani

    Economic CBC News
    CBC Calgary presents Venturing Out with Arlene Dickinson. It's a seven-part series of candid conversations between Arlene and some of Canada's top entrepreneurs. They cover the highs the lows and everything in-between when it comes to starting and running a business in Canada. Source
  • Asian stocks sag amid caution on earnings, politics

    Economic CTV News
    TOKYO -- Asian share benchmarks sagged Tuesday as investors awaited a slew of corporate earnings reports. A meeting of the Federal Reserve and caution over potential twists and turns in U.S. politics kept most indexes trading within a narrow range. Source
  • New investment rules fail to reveal some hidden fees

    Economic CBC News
    You may have noticed some new information in your latest investment update, and some of it might have you scratching your head. It's all thanks to a new set of rules, mandated by Canadian securities regulators, called Client Relationship Model 2 (CRM2), which is supposed to provide investors with more information about what they're spending to have their money managed, and how their investments are performing. Source
  • 'Energizer Bunny' loonie to peak near 80 cents US: experts

    Economic CTV News
    Two leading Bay Street strategists expect the Canadian dollar’s steady climb over the last two months will start to top out at about 80 cents US, a level it flirted with on Monday amid signs of an increasingly robust economy. Source
  • In Google vs. the EU, a $2.7B fine could just be the start

    Economic CTV News
    SAN FRANCISCO -- Google's parent company Alphabet can easily afford the $2.7 billion write-down it's taking to cover a big antitrust fine in Europe. But it might find it harder to shrug off the rest of the European regulatory assault that's headed its way. Source
  • Alphabet profit slumps on record $2.7B US fine by European Union

    Economic CBC News
    Alphabet Inc. reported a 27.7 percent drop in quarterly profit as the company recorded a previously announced charge related to a record fine imposed on its Google unit by the EU. EU antitrust regulators last month hit Google with a record 2.4-billion-euro ($2.7 billion US) fine for favouring its own shopping service, taking a tough line in the first of three probes of its dominance in searches and smartphone operating systems. Source
  • Why an 80-cent loonie is good for shoppers but bad for oil producers

    Economic CBC News
    One of the few saving graces of the oil downturn has been that oil is priced in U.S. dollars. Energy companies sell their products in U.S. currency, but pay their expenses in Canadian dollars. So as the loonie dropped over the past three years, it tempered the brutal downturn. Source