WSJ Asked 13 Investment Banks For Their Oil Outlook: Here's What Was Said

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surveyed 13 investment banks and asked for their oil outlook through next year. The results of the survey showed that banks are bearish on oil yet again.

The banks expect West Texas Intermediate (WTI) crude to average $55 a barrel next year, marking a decrease of around one dollar from the WSJ's prior survey.

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The survey comes at a time when WTI is hovering near the $40 per barrel mark, which represents a near 20 percent dip from its year-to date highs.

"There is still a lot of oil out there and the sentiment is pretty bearish," Michael Wittner, chief oil analyst at Société Générale SA told the Wall Street Journal. For the time being, the path of least resistance for oil prices continues to be lower."

The latest survey also marks a contrast from those conducted last summer. At that time, many of the banks were estimating oil would rise above $70 a barrel at some point in 2016.

Oil has dipped over the past few months given a growing glut of gasoline across the world. Meanwhile, consumption hasn't been able to keep pace with new production as Russian production stands near historical post-Soviet highs and production from Canada returned online following a devastating fire that hammered oil-rich regions.

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USOUnited States Oil Fund

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