Trading & Risk

$100/bbl Brent by 4Q23 will cause ‘ouching’ for short sellers

China and India expected to account for 80% of oil demand growth this year

byEnverus

CALGARY, Alberta (June 6, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released its latest Macro Forecaster, a report developed for the financial services industry, and focused on the outlook for near-term oil and gas prices. In EIR’s report discusses relevant fundamental drivers of oil and gas prices, North American oil and gas supply and demand, and inflationary impacts around general global economic uncertainty.

EIR continues to call for a gradual improvement of global economic activity and seasonal demand tail winds to lead to a supply shortage of 1-3 MMbbl/d in 2H23 and $100/bbl Brent by 4Q23. Crude oil prices should be higher than they currently are. However, short sellers concerned about the global economy and oil demand (currently, at an all-time high of approximately 101.5 MMbbl/d) are keeping prices subdued. Moreover, Saudi Energy Minister Prince Abdulaziz bin Salman stated, “I keep advising them (speculative short sellers) that they will be ouching,” in reference to expected losses should oil price come closer to the Saudis’ and our expectations.

“We anticipate that demand growth from China and India will account for 80% of oil demand growth this year,” said Al Salazar, senior vice president at EIR.

“There is a risk that front-month NYMEX prices could test below our anticipated price range since storage remains on pace to challenge record highs,” Salazar said.

Key takeaways the report:

  • EIR continues to expect that an improvement in global economic activity, combined with a seasonal demand uplift, will create an oil supply shortage in the second half of this year — underpinning the call for Brent oil prices to hit $100/bbl by the end of 2023.
  • Although gas activity is finally starting to slow, EIR expects record high storage levels in the U.S. by the end of the injection season, with the Northeast storage region will feeling the pinch first.

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

About Enverus
Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing, and our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with 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.

Media Contact: Jon Haubert | 303.396.5996

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