Crude oil prices have been on a roller coaster ride in 2016
Crude oil prices have rallied almost 45% in the past two months. However, they are down by 13% since March 22 highs. They have also lost 65% since June 2014 due to long-term oversupply. The roller coaster ride in crude oil prices is expected to continue in 2016.
Crude oil price forecasts
The Wall Street Journal reported that many investment banks have raised their crude oil price forecast for 2016 for the first time since August 2015. Banks have raised their crude oil price forecast by $1 per barrel from their previous estimates. Brent crude oil prices are expected to average around $40 per barrel in 2016. West Texas Intermediate (or WTI) crude oil prices are expected to average $39 per barrel for the same period.