Eurasia CEO predicts oil barrel price to slowly get back to mid-$60s by News Staff Posted Feb 4, 2015 5:13 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email A leading expert on oil prices is predicting the price of a barrel of oil will go back up to the mid-$60s by the end of the year, which may not be great for Alberta, but it is sustainable.Robert Johnston is the CEO of Eurasia Group and told a Calgary Chamber of Commerce audience Tuesday the price ultimately depends on what the Saudis do with regards to a price point.He thinks the current price simply isn’t sustainable for their budget and it will go up slowly to the $65 range.As for what it means for Alberta businesses, he said it’s manageable.“It’s not easy, but it’s not a disaster either,” Johnston said. “I think at $65 the best projects with the most efficient returns will do okay, it will be challenging for the government, there’s some spending that was built up in the previous cycle that will be challenging to deal with, but I think we’ll come through okay if we can be efficient in this cycle.”He said though we can expect more industry layoffs in the coming year.“Unfortunately, I think 2015 it’ll probably get a little worse before it gets better, but I think by 2016, probably one more round of cuts, then we look at that mid-60s price next year, maybe things get a little bit better,” he said.He also thinks Alberta should keep an eye on what’s going on internationally.“I think honestly the message is to look globally, we’ve been so focused on investments in North America that there are some good opportunities around the world,” he said. “What are the Saudis going to do, what’s going to happen in China because that could actually drive the recovery here.”

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