Crude Oil Prices Went on a Wild Ride in 2017

Heading into the year, most analysts expected that 2017 would be a tamer one for oil prices because OPEC had finally stepped in to support the market by pledging to limit its production. Because of that, most analysts expected oil to be between $50 and $55 per barrel this year. Crude oil, however, surprised on both ends of the spectrum, plunging back into the low $40s in June before staging a quiet but impressive rally. Overall, the U.S. oil benchmark WTI was up about 8% through mid-December to around $57 a barrel, while the global benchmark Brent soared nearly 20% to more than $63 per barrel.

This volatility had a considerable impact on oil companies this year, with U.S. shale drillers having to readjust quickly when oil prices tanked this summer. That said, after getting burned earlier in the year, they haven't been quite so quick to adjust once oil prices turned higher. By holding back, though, it makes it much more likely that crude prices will hold their ground -- especially after OPEC recently extended its production reduction agreement through the end of next year -- which would be great for producer profitability in 2018.

Image source: Getty Images.

Source: Fool.com