Executives from 151 oil and gas companies have forecast where the West Texas Intermediate (WTI) price will end up this year as part of the Dallas Fed’s latest energy survey.
When asked in the second quarter survey what they expected the price of WTI crude oil to be at the end of 2023, the average response in the survey was $77.48 per barrel. The poll’s low forecast was $60 per barrel, while the high forecast was $100 per barrel. The price of WTI during the survey was $69.89 per barrel, the survey noted.
In the Dallas Fed’s first-quarter energy survey, which was released in April, the survey’s average response to the same question, of executives at 145 oil and gas companies, was of $79.64 per barrel. The low forecast in that survey was $50 per barrel and the high forecast was $160 per barrel. The WTI price during this survey was $68.51 per barrel, the Dallas Fed Energy Survey for the first quarter noted.
In its latest Short-Term Energy Outlook (STEO), which was released in June, the US Energy Information Administration (EIA) projected the West Texas Intermediate spot price to average 74.60 dollars per barrel this year. The EIA projected in this STEO that the spot average for WTI would be $74.16 per barrel in the second quarter of the year, $73.32 per barrel in the third quarter and $74.97 per barrel in the fourth quarter. The WTI spot price averaged $94.91 per barrel in 2022, the EIA’s latest STEO noted.
“We estimate that West Texas Intermediate crude oil prices will average $83 per barrel over the three years from 2022 to 2024, while annual growth in US crude oil production over the same period will average 0.4 million barrels per day,” the EIA said in its latest paper. STEO.
“This compares with average crude production growth of 1.1 million barrels per day over the three-year period from 2017 to 2019, when the price of WTI averaged just $58 per barrel,” the EIA added.
“The changing response to crude oil prices by US producers may reflect a combination of using capital to raise dividends and buy back shares rather than investing in new production, the effects of tighter labor markets and higher costs, and increasing pressure on oilfield supply chains,” the EIA continued.
The EIA’s previous STEO, which was released in May, projected the WTI spot price to average $73.62 per barrel in 2023. In that STEO, the WTI spot average was projected to was $72.50 per barrel in the second quarter and $73 per barrel. barrel in both the third and fourth quarters of 2023.
A market report sent to Rigzone on June 27 showed that Standard Chartered expects WTI to reach $88 per barrel in 2023. The organization expects the commodity to average $85 per barrel in the third quarter of this year year and $91 per barrel in the fourth quarter. . In a separate report sent to Rigzone in January, Standard Chartered made the same WTI price projections.
In another report sent to Rigzone on June 22, the Macquarie Macro Strategy team projected that WTI would average $75.37 per barrel in 2023. This report showed that the team expected the commodity to have an average of $75 per barrel in the second quarter, $77.50 per barrel in the second quarter. third quarter, and $73 per barrel in the fourth quarter.
In a report sent to Rigzone in May, BMI, a Fitch Solutions company, predicted that the price of WTI crude would reach $81 a barrel by 2023. Also in May, BofA Global Research highlighted in a report on oil and gas of the US which had a base case of $75 per barrel of WTI.
At the time of writing, the price of WTI is trading at $69.05 per barrel. The commodity’s 2023 year-to-date close was Jan. 26 at $87.47 a barrel, and its 2023 year-to-date low was March 17 at $66.74 the barrel
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