Two-thirds of the energy executives KPMG polled think Brent crude oil prices will peak above $131 a barrel this year. Nearly half those surveyed expect it to pass $141 a barrel. Brent crude is now trading in the $110 range.
John Kunasek is national leader of KPMG’s energy practice. He says a combination of economic uncertainty, geopolitical risk, and rising operating costs will keep prices volatile for months.
“I know in the last couple of weeks prices have come down a bit, but the results of our survey indicate that we may not have seen the peaks yet.”
Six in ten of those surveyed said their companies plan to increase capital spending compared to last year, while nearly half said they plan to boost hiring over the next twelve months.