Flow Level Pressure
What Does the Future Hold for Oil, According to the Man Who Predicted the Slump?
Apr 18 2017 Read 795 Times
When Mark Yusko makes a prediction, the world listens. Especially when it’s regarding the future of the oil industry…
Two years ago, back when oil was priced at around US$50 a barrel, Mark Yusko made a dire prediction that the commodity would slide by 40%. At the time Yusko was working as a hedge fund manager for Morgan Creek Capital Management. In February 2016 his predictions transpired, and oil hit a record low of US26.21 a barrel.
Light at the end of the tunnel
Now, he’s made another high-profile forecast, but this time the outlook isn’t quite as bleak. While he does see oil falling even further over the course of 2017, he maintains that it will eventually stabilise at around US$60 a barrel.
"We think oil's kind of going to be stuck in a rut here. I think there are a lot of oil bulls out there, particularly at the beginning of the year," he explained in an interview on CNBC's "Trading Nation."
According to Yusko, crude oil will "drift from the low $40s up toward $60 by the end of the year. I think it'll be pretty flatish in the $50s during the summer, and then we'll get that last December rally into year-end like we got last year, and probably finish in the high 50s, maybe hit $60."
US spike “a surprise”
He may be savvy when it comes to the oil market, but even Yusko admits that he was surprised at the recent spike in US production. As a result, Stateside crude oil stocks rose to a record high in mid-March. But despite the positive climb, Yusko warns that it could quickly fizzle out.
"There's a lot of hope built into these markets today on the Trump trifecta of regulatory relief and tax cuts and fiscal spending. And I think there's going to be a whole lot of nothing by the end of the year."
As for what stocks does Yusko has his eye on in 2017… The oil market guru has revealed a handful of top picks, including Diamondback Energy, Pioneer Energy, Parsley Energy and RSP Permian. Watch this space!
In the same way that Yusko predicts the market landscape, other experts help improve efficiency. ‘NEL Helps Oil & Gas Industry Reduce Financial Burden of Heavy Oil Measurement’ offers expert insight from Craig Marshall, who welcomes comments on industry appetite, market size and more.
Do you like or dislike what you have read? Why not post a comment to tell others / the manufacturer and our Editor what you think. To leave comments please complete the form below. Providing the content is approved, your comment will be on screen in less than 24 hours. Leaving comments on product information and articles can assist with future editorial and article content. Post questions, thoughts or simply whether you like the content.
In This Edition Fuel for Thought - New Partnership for the US Distributio - Element opens new oil and gas laboratory in Singapore - Metrohm Acquires B&W Tek Analytical Instrumentation...
View all digital editions
Oct 20 2018 Houston, USA
Oct 21 2018 Houston, Tx, USA
Oct 22 2018 Amsterdam, Netherlands
Oct 23 2018 Kiev, Ukraine
Oct 24 2018 Toronto, Canada