Global oil and gas industry on steady footing: Moody’s - The Peninsula Qatar

Global oil and gas industry on steady footing: Moody’s - The Peninsula Qatar:

Oil and natural gas prices will be volatile, but also range-bound in 2019. While the recent announcement that Opec and Russia will cut production helps alleviate concerns about oversupply, the pivotal questions in the coming year are whether Opec and Russia will maintain their production discipline and what might happen in June, when the current agreement expires, Moody’s Investors Service said in its annual report outlining key credit themes in oil and gas for the year ahead.

Moody’s expects the medium-term price band for West Texas Intermediate (WTI) crude, the main North American benchmark, to be $50-$70 per barrel (bbl), and North American natural gas at Henry Hub to average $2.50-$3.50/MMBtu.

“Market expectations for continued strong oil demand growth remain in place, despite concerns about slowing demand growth as a result of weaker economic growth, the impact of tariffs and a strong US dollar,” said Steve Wood, Moody’s Managing Director for Oil & Gas.