In another of our occasional guest blog entries, Steven Kopits of Princeton Energy Advisors considers the clashing views of Citi Commodities Research and Chevron regarding the likely path of oil prices. Steve can be reached at [email protected]. The direction of oil prices is once again a hot topic. In a recent Barron’s article , Ed Morse, Citigroup’s head of global commodity research, forecasts a collapse in global oil prices to $75 /b over the next three to five years. By contrast, Chevron has announced that it is budgeting with $110/b oil for 2017, with the company’s CEO John Watson stating, “There is a new reality in our business… $100/bbl is becoming the new $20/bbl in our business….costs have caught up to revenues for many classes of projects.” And for good measure, he adds, “If $100 is the new $20, consumers will pay more for oil.” Thus, two diametrically opposed […]