Oil Price Forecast for 2023
Posted: Wed Dec 21, 2022 9:55 am
S&P Global’s base case forecast for oil prices is $90 a barrel for 2023, but Dan Yergin warns there are major uncertainties looming over markets.
For example, he said prices could retake $120 when China fully reopens — that would be around the same level as March highs after Russia invaded Ukraine.
Read more: https://www.cnbc.com/2022/12/21/dan-yer ... ening.html
I am updating my "Fair Value Estimates" for each company (what I think the stocks are worth TODAY) based on the assumption that WTI will average $85/bbl and Henry Hub natural gas will average $6.00/MMBtu in 2023. All of the Sweet 16 valuations have been updated. Under the Sweet 16 tab on the EPG website you can find a summary spreadsheet that shows my valuation and First Call's price target for each stock.
Keep in mind that most of the companies realized prices for oil and gas net of the cash settlements on their hedges were much lower in 2022.
Dan Yergin also says that if we have a serious global recession that Brent could drop to $70/bbl, at which point OPEC+ would cut production to raise the price.
For example, he said prices could retake $120 when China fully reopens — that would be around the same level as March highs after Russia invaded Ukraine.
Read more: https://www.cnbc.com/2022/12/21/dan-yer ... ening.html
I am updating my "Fair Value Estimates" for each company (what I think the stocks are worth TODAY) based on the assumption that WTI will average $85/bbl and Henry Hub natural gas will average $6.00/MMBtu in 2023. All of the Sweet 16 valuations have been updated. Under the Sweet 16 tab on the EPG website you can find a summary spreadsheet that shows my valuation and First Call's price target for each stock.
Keep in mind that most of the companies realized prices for oil and gas net of the cash settlements on their hedges were much lower in 2022.
Dan Yergin also says that if we have a serious global recession that Brent could drop to $70/bbl, at which point OPEC+ would cut production to raise the price.