Executive Summary
Oil prices closed the year reaching $60 per barrel, WTI futures prices returned to backwardation, and oil price volatility was relatively calm as the price stayed within an $18 band all year ($42 – $60). Natural gas, on the other hand, continued its woes of declining prices, transportation constraints, and oversupply. Hope remains that increased natural gas exports will change the narrative, but that is still undetermined. For the oil industry, a repeat of 2017 would be a welcomed event, making the theme for the year ahead – “Steady as she goes.”
