Short-Term Forecast for the World Oil Price
Sources: History: EIA; Projections: Short-Term Energy Outlook, August 2000.
Notes:
For clarity’s sake, let me say that the most traded crude oil in the world, West Texas Intermediate, is usually about $2 per barrel higher than the “world oil price” used in this presentation.
From the low-to-mid $20s in early 1997, crude oil prices fell dramatically in 1997 & 1998, leading to a nearly unprecedented event, OPEC cohesion. Prices became so low that OPEC could finally agree and act. Following the 3rd of 3 cuts in production quotas, prices rose dramatically to where we see them today.
So where do we see crude oil prices going from here?