EIR shares outlook for near-term oil and gas prices
Published by Emily Thomas,
Enverus Intelligence Research (EIR), a subsidiary of Enverus, has released its latest Macro Forecaster, a report developed for the financial services industry, and is focused on the outlook for near-term oil and gas prices. In EIR’s report, relevant fundamental drivers of oil and gas are discussed, of which include resurgent Chinese oil demand, Permian supply concerns, inflationary impacts on oil field services and general global economic uncertainty.
“We expect additional crude and product inventory draws in the second half of 2023, as accelerating demand exceeds supply growth. Crude and product inventories that currently remain stubbornly below the five-year average will be further stressed and triple digit oil prices seem inevitable,” said Al Salazar, Senior Vice President at EIR.
“Natural gas production has been resilient in 2023 in comparison to 2022, and we expect 2.9 Bcf/d of growth over the summer. Some of the growth will be offset by incremental LNG demand from Freeport LNG terminal’s restart and increased price-induced power burn growth, but natural gas prices will be under intense pressure,” Salazar said.
Key takeaways the report:
EIR forecasts Brent to reach triple-digit oil prices in 2H23 as demand is expected to grow 1.5 MMbbl/d Y/Y and Russian shipments of crude are falling month over month.
EIR forecasts NYMEX to remain depressed this summer with risks to the downside if activity in the Haynesville maintains current pace.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/09032023/eir-shares-outlook-for-near-term-oil-and-gas-prices/
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