Energy Sector Outlook for 2015
It appears that crude oil prices are starting to stabilize. At least they’ve started to decline slower. Most of the “experts” who send me their price forecasts have the low being set in the $45 to $55 range.
This week we will see the first major winter storm of the season, which should draw more attention to the energy sector. The first “Clipper” of the season will bring heavy snow, high winds and very cold temperatures to an area of the country that burns a lot of natural gas for residential space heating. People in the Northeast still use a lot of heating oil to heat their homes, so this may have some impact on oil demand.
Outlook for 2015
2008 was the last time we saw crude oil prices plunge anything like they have this year. In that year the entire economy went into the tank, which in turn reduced energy demand. This year, it is the slow down in the Asian economies responsible for the International Energy Agency’s cut in their global oil demand forecast. Note that the IEA is still forecasting a significant year-over-year increase in demand.
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