Marcus Hiles Discusses OPEC Decision’s Major Impact On Houston Economy
The day succeeding OPEC’s agreement to cut production by 1.2 million barrels per day, saw U.S. crude reach its biggest daily price spike in more than seven years, climbing by nearly ten percent to $49.44. “This means 2017 will be a better year for oil and gas activity,” said David Pursell, research manager at energy investment banking firm Tudor, Pickering, Holt & Co. to the Houston Chronicle. “It’s really good for Houston and the white-collar jobs.” Above the $50-plus range, the New York Times reported that costs may increase through the winter months, furthering economic recovery. Another good sign for Houston, notes Marcus Hiles, is that in December the monthly Purchasing Managers Index, a survey of supply chain leaders to measure commercial activity, gave the city its third positive report in a row, based on prospects for near-term expansion in employment, sales and production among important industries. “We’re seeing fairly significant strengthening in most of the underlying sectors, particularly oil and gas,” Ross Harvin, report compiler for the Institute for Supply Management, said to Houston Public Media.