Specter of $150/bbl Looms as WTI Jumps 26% in One Week

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byEnverus

Calgary, Alberta (March 7, 2022) — Enverus, the leading energy SaaS and data analytics company, has released an updated QuickPrice research report highlighting the possibility of $150/bbl crude oil.

Increasingly severe sanctions imposed by the U.S. and its allies on Russia in the wake of its invasion of Ukraine are isolating the country — one of the world’s largest oil exporters — from global markets and pushing WTI to prices not seen since 2008. While sanctions have not directly targeted Russian energy exports, that sector is still being stretched to its limit and further tightening the global supply picture. If proposed bans on oil imports from Russia in the U.S. and Europe come to fruition, $150/bbl is not out of the question.

“Sanctions so far have not directly targeted Russia’s energy exports, but they have still been impacted. The country exports around 7 MMbbl/d of oil and oil products, making it one of the largest exporters in the world. Last week, major oil and gas companies — including four supermajors — announced plans to exit their Russian businesses. Traders also reportedly had difficulty in finding buyers for Russia’s benchmark Urals crude despite significant discounts,” said Matthew Keillor of Enverus.

Key takeaways from Enverus’ QuickPrice research report:

  • WTI’s settlement of $103.41/bbl on Tuesday was its first above $100 since 2014. The Friday settlement of $115.68/bbl was up 26% week-over-week and was the benchmark’s highest settlement since September 2008.
  • The U.S. and some European allies are now considering a ban on Russian oil imports, which market watchers have predicted could lead to prices of $150/bbl or more. For reference, the highest WTI settlement ever, set on July 3, 2008, was $145.29.
  • Henry Hub also climbed 12% last week to settle at $5.016/MMBtu on Friday, which was the benchmark’s first settlement over $5 since Feb. 2. Although Russian gas supplies to Europe have continued, significant uncertainty helped drive a surge in European prices, and the conflict raised the prospect of increased demand for U.S. LNG.

QuickPrice is published every week by Enverus and covers oil and gas price activity with data on prices, inventories, production, rig activity and other factors affecting the market.

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

 

 

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