On April 19, Derik Andreoli, Director of Economic Research and Forecasting at Mercator International delivered a provocative presentation on oil prices and geopolitical risk to the Puget Sound Roundtable Council of Supply Chain Management Professionals. Mr. Andreoli delivered a similar oil price forecast back in January for the 2017 Logistics Management Magazine Annual Rate Outlook. At the time, he predicted that despite the fact that OPEC had announced oil production cuts on the order of 1.2 million barrels per day, “oil prices would remain in the $50 to $60 range over the first half of 2017.” He further asserted that there was a better chance of the market surprising to the downside than to the upside. With only a handful of weeks remaining in the first half, his January forecast remains squarely on target.
