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U.S. energy executives' outlook sours for first time since 2016: Fed survey

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Reuters
Last Updated : Jan 03 2019 | 11:35 PM IST

(Reuters) - U.S. oil and gas executives' outlook turned negative for the first time since the low point of the last oil bust, according to results of a survey released on Thursday by the Federal Reserve Bank of Dallas.

A survey of executive sentiment fell to -10 from 47 in the prior quarter, the first negative reading since early 2016, when U.S. crude prices plummeted to $26 per barrel.

More than half of executives said they expect lower capital spending in 2019.

Still, executives are predicting the U.S. crude will end the year trading around $60 per barrel - a 30 percent increase over current prices.

Responses ranged from $50 to $64.99 per barrel, according to the survey conducted Dec. 12-20. Only 9 percent of executives said they were planning for a per barrel price below $50 for the year.

The U.S. benchmark West Texas Intermediate crude was trading around $46.61 on Thursday morning.

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(Reporting by Jennifer Hiller; Editing by Marguerita Choy)

Disclaimer: No Business Standard Journalist was involved in creation of this content

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First Published: Jan 03 2019 | 11:34 PM IST

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