Oil prices are set to hit $85 a barrel sooner than expected 

in Other News/World by

Barclays is the most recent bank that said oil prices will peak sooner than expected as the worlds consumers are facing supply shortage. 

This is good news especially for workers who lost their jobs across North America and are facing financial hardship as they continue to struggle emotionally and financially, the higher the oil prices the more work and wage increases. 

CNBC reports:

The bank said Tuesday it now sees oil prices averaging $85 a barrel by 2019, slightly higher than its prior view and one year ahead of its last assessment in October. Barclays previously saw Brent at $83 a barrel in 2019 and $85 a barrel in 2020. It now expects the oil price to peak in 2019 before declining to $78 in 2021.

Over the last few months oil prices have averaged around $45 a barrel, sometimes jumping as much as $4 in one day, that raised hopes for many but it didn’t take long for prices to slump again. 

Oil companies reported they need at least $50 a barrel to make a profit, and some reported not showing a profit for up to $75 a barrel, some have contracts of $70 a barrel locked in from 2013-2014 season and continue to produce. 

“On the supply side, the one-two punch of capex reductions on current and future production is likely to create a shortfall in production over the coming years, and we show evidence that decline rates are already accelerating,” said Barclays Bank. 

So far we can expect $60 a barrel in early 2017 which will put many back to work especially for those who need it most, however oil producers and drilling companies say it will take some time longer to raise wages to make up for lost revenue, some reported it will be raised as soon as oil prices go up, so for now we can only hope and wait, for a recession this size, the wait won’t be much longer.