For the next month, I have increased my West Texas Intermediate oil price forecast by $2.50 to range between $55 to $65 a barrel.
With phase one of the US-China trade deal now out of the way and OPEC+ announcing a cutback to production, oil prices rose slightly more than I expected, though still within the range I had set out last month. Throughout December, both the stock market and oil prices climbed higher. The question now is have equity and oil prices advanced too far, too fast. While I tend to think that both are ahead of themselves, I also realize that price momentum can go on for longer than most may anticipate. Now, I would like to see how the markets in general react in the New Year, especially after the strong 2019 stock market.
Overall, I expect WTI oil prices to range between $57.50 and $62.50 a barrel, though I have allowed more room on both ends to provide a $10 range.
To investors and traders, I extend my best wishes that this coming year and decade treat you well.