After the members of OPEC agreed to reduce production by 1.2 million barrels per day, U.S. crude saw its biggest daily price gain in over seven years the next day, climbing by almost ten percent to $49.44. “This means 2017 will be a better year for oil and gas activity,” David Pursell, research manager at energy investment bank Tudor, Pickering, Holt & Co., noted in the Houston Chronicle.
“It’s really good for Houston and the white-collar jobs.”
Now over $50, the New York Times stated that prices could continue to rise in the winter months, further spurring economic recovery. Marcus Hiles explains that confirming the positive trend, in December the monthly Purchasing Managers Index, a survey of supply chain leaders which measures commercial activity, gave Houston its third positive report in a row, hinting at near-term expansion in employment, sales and production among all top industries.
“We’re seeing fairly significant strengthening in most of the underlying sectors, particularly oil and gas,” Ross Harvin, who compiles the report for the Institute for Supply Management, explained to Houston Public Media.