Raymond James Oil Price Forecast as of July 15
Posted: Mon Jul 15, 2019 10:23 am
A senior analyst from Raymond James will be the opening speaker at our Houston luncheon on July 31st. RJ is still expecting WTI to reach $75/bbl by year-end and then move to $100/bbl within a year. This is definitely a luncheon that you need to attend.
Go here to register: https://energyprospectus.com/12514-2/
Cut from the Raymond James' Energy Sector Brief dated July 15, 2019:
"After a disappointing May and June, oil prices have firmed up in recent weeks. Even though we expect oil prices will continue to move higher this year, the damage has been done to E&P psyche. In this week's stat, we detail why we now expect the U.S. rig count to decline further, and how recent oil price volatility coupled with capital discipline from E&Ps will delay U.S. rig activity increases until early 2020. Specifically, we expect the U.S. rig count to decline by ~40 rigs (or about 4%) through the rest of 2019, before increasing by ~300 rigs (or over 30%) over the course of 2020 on the back of higher oil prices. Overall, we are reducing our 2019 average U.S. rig count estimate from 1015 rigs down to an average of 980 rigs, while the 2020 averages fall from 1200 to an average of 1120 rigs. Lastly, contrary to this U.S. slowdown, we still believe international rig activity remains poised for a multi-year recovery, with rig count gains of 7% in 2019 and 8% in 2020."
Send me an email if you'd like to read the full RJ report: dmsteffens@comcast.net
Go here to register: https://energyprospectus.com/12514-2/
Cut from the Raymond James' Energy Sector Brief dated July 15, 2019:
"After a disappointing May and June, oil prices have firmed up in recent weeks. Even though we expect oil prices will continue to move higher this year, the damage has been done to E&P psyche. In this week's stat, we detail why we now expect the U.S. rig count to decline further, and how recent oil price volatility coupled with capital discipline from E&Ps will delay U.S. rig activity increases until early 2020. Specifically, we expect the U.S. rig count to decline by ~40 rigs (or about 4%) through the rest of 2019, before increasing by ~300 rigs (or over 30%) over the course of 2020 on the back of higher oil prices. Overall, we are reducing our 2019 average U.S. rig count estimate from 1015 rigs down to an average of 980 rigs, while the 2020 averages fall from 1200 to an average of 1120 rigs. Lastly, contrary to this U.S. slowdown, we still believe international rig activity remains poised for a multi-year recovery, with rig count gains of 7% in 2019 and 8% in 2020."
Send me an email if you'd like to read the full RJ report: dmsteffens@comcast.net