RBC report says oil prices on the rise for next two years

More good news for Albertans today as a report by RBC Economics forecasts oil prices to stay above 2016 lows.

The average annual price of a barrel of West Texas Intermediate crude oil was $43 in 2016, according to the report, and that is expected to rise to $54 this year and to $60 in 2018.

"OPEC’s decision to extend production cuts to March 2018 interrupted the month-long price decline with a barrel of West Texas Intermediate rallying to trade around $50.00. US production increases are likely to cap the upside for prices in the near term although we expect lower production from OPEC and Russia will be sufficient to reduce global oversupply later this year," says RBC.

"This combination will support WTI prices rising to $56.00 per barrel in the second half of the year. Further price gains in 2018 will be contingent on global demand holding up and producers preventing a rebuilding of oversupply."