Oil Will Struggle to Break Past $60 a Barrel in 2016

Some of the world’s largest energy companies and investment banks are becoming more pessimistic about the ability of crude oil pricing to reach even $60 a barrel next year, reporting steep losses as they take hits on projects that no longer make financial sense. Continued oversupply means that next year, Brent crude prices will average $58 a barrel and West Texas Intermediate, the U.S. oil benchmark, will average $54 a barrel, according to 13 investment banks polled by The Wall Street Journal. The analysis comes as energy titans such as Royal Dutch Shell PLC and France’s Total SA on Thursday reported billions of dollars in write-downs after a quarter in which oil prices fell to the lowest since the financial crisis.


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