Dubai: The price of oil this year will most likely average $40 per barrel in 2016, according to energy industry experts polled during a recent survey in the UAE.
At the 7th UAE Energy Forum on Tuesday, Gulf Intelligence asked 250 participants, including government officials, heads of oil and gas companies and analysts about where they think crude prices are headed this year.
More than half (51 per cent) of the respondents said they expect oil prices to average $40 per barrel, while nearly one-third said the price would stick to $30 per barrel.
Forum participants included representatives of companies like Breitling Energy Corporation, Shell, Mubadala Petroleum, Oxy Oil and Gas, among many others.
About 45 per cent of the respondents indicated that the “restrained budgets” in the Gulf region will be the centre of attention this year as it is the top macroeconomic factor that could impact the oil and gas sector in 2016.
The weakness in Chinese markets is something to watch out for as well, with 38 per cent of the respondents saying it could also affect the sector.
However, the weakening economies in most of the BRIC countries (Brazil, Russia, India and China) and the United States Federal Reserve decision to increase interest rates were not seen to have a major impact, gaining only 10 per cent and 8 per cent, respectively, of the votes.
After hitting a 12-year low of $29.93 on Tuesday, crude increased to $30.81 per barrel on Wednesday.
