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The Dallas fed's corporate outlook index was negative first time since 2016

Release time: 2019-03-08
                                                                                                Labour market index shows' slower growth in employment and working hours' in q4.


Most of the oil executives surveyed by the Dallas fed said they planned to increase spending in 2019 despite the fall in oil prices.
According to the survey, 45 percent of respondents said their top goal for 2019 is to increase production.Just over half, 53 per cent, said they planned to increase spending "modestly" or "substantially";Nearly the same percentage said the recent drop in oil prices led them to scale back planned spending in 2019.
The survey was conducted December 12-20 among 167 oil and gas producers and service companies in Texas and Louisiana.During that time, WTI prices fell from $53 to $45 a barrel.Executives on average expect WTI to climb to nearly $60 by the end of 2019.According to the survey, the largest percentage of companies make spending plans based on oil prices between $50 and $55 a barrel.
Most companies reported more uncertainty, with the Dallas fed's corporate outlook index turning negative for the first time since the first quarter of 2016. Oilfield service providers led the decline.
An index of energy companies that the Dallas fed considers to be the most comprehensive that it tracks fell to 2.3 in the fourth quarter from 43.3 in the third. Anything above zero still indicates growth.
"The Labour market index shows that employment and hours growth slowed in the fourth quarter, particularly in the oil and gas services sector, and wage growth accelerated," the report said.
According to the survey, the Henry center's natural gas price is expected to be $3.34 per million British thermal units by the end of the year.