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Oil Sector Faces Decline, Forecasts Moderate Price Recovery

12/18/2025

Summary

Story summary

The Federal Reserve Bank of Dallas reports a negative business activity index of -6.2 in the oil and gas sector for Q4 2025.
Executives forecast West Texas Intermediate (WTI) oil prices to average $62 per barrel by the end of 2026, rising to $69 in 2027 and $75 by 2029/2030.
Despite doubts about U.S. production data, the survey shows a slight increase in natural gas production, with nearly 60% of firms anticipating AI will improve equipment lifespan.
Employment and activity levels in the sector continue to decline.

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Story summary

The Federal Reserve Bank of Dallas reports a negative business activity index of -6.2 in the oil and gas sector for Q4 2025.
Executives forecast West Texas Intermediate (WTI) oil prices to average $62 per barrel by the end of 2026, rising to $69 in 2027 and $75 by 2029/2030.
Despite doubts about U.S. production data, the survey shows a slight increase in natural gas production, with nearly 60% of firms anticipating AI will improve equipment lifespan.
Employment and activity levels in the sector continue to decline.