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      US Oil Executives Forecast Year-End WTI Price Below Current Levels

      A recent survey conducted by the Federal Reserve Bank of Dallas reveals that U.S. oil and gas executives expect West Texas Intermediate (WTI) crude oil prices to average around $88 per barrel by the end of 2026. This forecast is notably lower than the current spot price of approximately $99 per barrel, indicating an anticipated easing in crude prices. However, the projections vary widely, with estimates ranging from $70 to $126 per barrel, reflecting significant uncertainty in the market.

      The survey, which included responses from 125 firms between September 16 and 24, found that nearly half of the executives believe that diesel prices will remain high relative to crude oil for more than a year. Specifically, 48% of respondents indicated that it would take over four quarters for diesel price spreads to return to levels seen in 2025, compared to 36% for gasoline. This sustained high cost of diesel could impact refining margins and transportation costs, even if crude prices decline.

      Additionally, the survey highlighted concerns regarding the normalization of crude oil exports from the Persian Gulf, with 28% of executives expecting a return to normal levels by the end of the second quarter of 2027. Geopolitical tensions and regulatory uncertainties were cited as significant factors influencing market conditions. The business activity index from the survey dropped to 38.8, indicating slower expansion in the sector, while production indexes for oil and natural gas showed modest increases.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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