Energy watch: Optimism returns to oil markets
For months, the world’s most respected commodity price forecasters have repeatedly embarrassed themselves by attempting to call a low point for a barrel of West Texas Intermediate (WTI) crude in the mid-70s, then the mid-60s and finally the low 50s. Those outlooks all proved too optimistic, of course, with WTI prices sinking below $45 last month.
More than seven months after experts first predicted the crash in crude oil prices would be little more than a “temporary blip”, there is reason to believe the worst is over. According to a new report from Canaccord Genuity, Royal Dutch Shell might have just “fired the starting gun for the next up cycle” by making a $70-billion bid to buy BG Group, and not only because of the hefty 52% premium the offer price implies.
Read the full article
here.