If you live in the northeast or almost anywhere this year, you might wonder about the cost of heating your home? or will gas prices go up?
In an article by John Kemp of Reuters, the expectations by those in the oil and gas industry is the price of oil to be in the range of $65 to $70 a barrel.
Every year, Reuters conducts a survey of energy professionals. The survey went to 9.000 people and 950 responded between January 8 and 11. The people were from oil and gas industry directly, banking, energy consultants, hedge funds and physical commodity trading.
Fewer than 5% thought the price would average more than $100 and 16% thought the price would less than $50.
Since November of 2017, Brent prices have closed between $60 and $75 a barrel on 74% of all trading days.
Linking to dividend paying stocks, if the survey is reasonably accurate despite many concerns in the world, the price of crude should be about what it is today. That means it is easier to plan and there will be fewer adjustments in your daily life. It is not that great if you were loading up on energy companies, for you would want the survey to go higher. Companies can still make profits with the consistent energy prices.
There are more questions than answers, till the next time – to raising questions.