The "new normal" for U.S. oil prices could be as much as double the current $40 per barrel, but don't expect $65 to $80 crude until around 2018, long-time industry advisor Tom Petrie said Wednesday.
"We overshot on the downside, when we penetrated $30 [per barrel]," Petrie said, referring to the Feb. 11 bottom of $26.05 per barrel. Since then, WTI has surged about 45 percent. "Some of that recovery, shock though it was, was getting back into a more normal adjusted price."
"We're going to … [see] enough of a decline in North America and China and other non-OPEC sources, where by this time next year, most of the surplus if not all will be eliminated. But we still then need to pull down those inventories," said Petrie, formerly a vice chairman of Bank of America Merrill Lynch.