Opinions about the future price of oil generally differ across sources, but rarely are the as divergent as recent quotes from Barron's and Yahoo! Finance. In just three days, the two financial outlets published articles that stated the price of a barrel of oil could reach $75 and north of $150, respectively.
Based on comments from major oil producers like Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM) and Royal Dutch Shell (NYSE:RDS-A), $75 per barrel is highly unlikely. For its internal project decision making, Chevron has announced that it will use $110 for the price of a barrel and ExxonMobil is using $109. With these three companies being so deeply ingrained in the oil and gas industry, it seems unlikely that $75 is any where near a long-term possibility. For more on this topic, check out our short clip below.
This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.