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Preparing For the Perfect Storm: Extreme Oil Price Volatility Is Coming

Enverus Intelligence Research assesses the impacts of Russia's invasion of Ukraine, OPEC's failure to achieve output goals and slower-than-expected supply additions in the U.S.

Media Contact: Jon Haubert | 303.396.5996

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Calgary, Alberta (February 28, 2022) — Enverus Intelligence Research, a subsidiary of Enverus, the leading global energy data analytics and SaaS technology company, has released its latest PetroLogic report, The Perfect Storm, which assesses the impacts of Russia’s invasion of Ukraine, OPEC’s failure to achieve output goals and slower-than-expected supply additions in the U.S. is having on its near-term oil outlook.

“Whether reduced by Western sanctions, by Russian limits or by the impacts of the fighting itself, we expect extreme price volatility in Brent,” said Bill Farren-Price, lead report author and director of Enverus Intelligence Research. “Ultimately, higher oil prices and weaker economic growth are not consistent with resurgent oil demand and there is a significant risk that oil markets will be considerably tighter in the coming months if Western sanctions are escalated to focus on Russian energy exports.”

Key takeaways from the report:

  • We no longer expect aggressive stock builds in 1Q22, but do expect modest builds throughout the year as higher prices weigh on demand and additional supply becomes available which will erode Brent prices to mid to low 80s by the end of the year.
  • We expect extreme volatility in Brent over the coming months but ultimately believe prices over $100/bbl coupled with weaker economic growth is not supportive of resurgent oil demand.

Graph showing Brent Prices vs Inventories

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus Intelligence Research’s expert analysts.

About Enverus
Enverus is the leading energy SaaS company delivering highly-technical insights and predictive/prescriptive analytics that empower customers to make decisions that increase profit. Enverus’ innovative technologies drive production and investment strategies, enable best practices for energy and commodity trading and risk management, and reduce costs through automated processes across critical business functions. Enverus is a strategic partner to more than 6,000 customers in 50 countries. Learn more at Enverus.com.

About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as an investment adviser.

 

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