July 11, 2017
Though Houston job growth improved in May 2017, “stability eludes the oil patch,” according to a report from the Greater Houston Partnership (GHP). The report, which noted that June 20, 2017 marked the third anniversary of the collapse in oil prices, pointed out that West Texas Intermediate (WTI) crude has traded as high as $54.48, and as low as $42.38 per barrel.
In June 2016, the U.S. Energy Information Administration (EIA) forecast WTI to trade, on average, at $57.94 per barrel by Q4 2017. By January 2017, however, the EIA revised the forecast to $53 per barrel, and in June 2017, revised again to $50 per barrel.
The reasons for the continued instability include an increase in U.S. oil production, combined with output from Libya and Nigeria, which were excluded from the OPEC agreement to slash production by 1.2 million barrels a day in late 2016.
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