Oil Price Forecast
Definition - What does Oil Price Forecast mean?
Oil Price Forecast is a method of predicting oil prices based on past patterns, events, current situations and future possibilities. Forecasting is usually as a result of study and analysis of available relevant data. It is helpful in predicting the future of the economies dependent on oil. The various methods used for forecasting are based on the outlook of the investors.
Petropedia explains Oil Price Forecast
Forecasting is a major part of any industry. The oil and gas industry is one of the important industries of three Gulf and Middle East countries that produce and export oil and natural gas in large quantities. Oil prices are important to set the import/export prices and for the economies of the countries that use oil and gas. Forecasting can be divided into two categories, i.e., long-term and short term.
- Long-term – The prediction of oil prices for next 10 to 15 years is taken as long-term forecasting. This is done after foreseeing the future probable events. Financial and statistical methods are used for the prediction.
- Short term – They are also known as the spot prices which help in taking the decision regarding the short term goals.