DALLAS, Texas (Nexstar) – The Federal Reserve in Dallas says the outlook in the oil and gas sector has ‘dramatically’ improved in recent weeks.
With the expanded activity in the energy industry, specifically the rising activity index, the production index, equipment utilization, and more, 2021 is starting to show some positive signs.
“Our latest survey results show the oil and gas industry starting 2021 on a positive note,” Dallas Fed senior research economist, Michael Plante said. “Business activity grew strongly, and survey respondents reported a dramatic improvement in their outlook. For the first time in two years, there were more firms reporting increased employment than job cuts.”
Additionally, the Dallas Fed reports that the aggregate employment index turned positive and the employee hours and wage results also turned positive in its most recent survey.
Those who responded to the Dallas Fed Survey also expect the West Texas Intermediate (WTI) to reach $61 per barrel by the end of 2021.
To read more from the Dallas Fed, visit the link here.