Oil prices to hover around $50 this year, touch $60 by 2017, say energy analysts

Deloittehas updated its oil price forecast and is nowpredicting prices will stay at $50,or just over, for the rest of the year,possibly touching $60at some point in 2017.

ButAndrewBotterill, a partnerwith the consultancy firm's resource and advisory group, saidit won't be a steady climb.

"I totally expect that we're going to have volatility in the next three months, even into the next year or so," he said. "I think we will touch high points, but I also think there are some downward pressures that we could see."

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Botterrill addedthat if production comes back on stream inFort McMurray, it could provide some of that downward pressure on oil prices.

Earlier this year,Deloittewas predicting oil to hover around $44a barrel, but flatteningcrude production and an ease inoversupply has changed its forecast.

Botterillsaidthe industry is now at a point where it's almost in balance.

"Now that we're close to that, I think what we'regoing tosee iscompanies slowly start to extend themselves, maybe start drilling a little bit more," he said.

"But I do think producers are going to be a little bit cautious in thatbecause, ultimately, there was a lot of damage done to balance sheets for companies and a lot of debt that's out there."

Deloitteis projecting oil prices will touch the $60mark sometime in 2017.

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