We forecast WTI averaging $70/Bbl in 2025 – slightly higher than the futures strip – with Brent at $5/Bbl premium. For U.S. natural gas, we forecast an average of $4/Mcf, which is meaningfully above the futures strip. In this context, let’s underscore that investors will continue to lavish attention on everything related to AI, including read-through for electricity demand and the associated “picks and shovels”. AI remains the number-one story in the energy sector, and accommodating this incremental demand will take an all-of-the-above strategy: gas, renewables, and - in certain circumstances, and with very long lead times - nuclear as well.
The energy sector currently sits at only ~3% of S&P market cap, but investor sentiment still remains above pre-COVID levels. That being said, near-term uncertainty regarding the commodities (namely oil) has left investors with little conviction at the moment.
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My forecast for 2025 are based on $75/bbl WTI and $3.50 HH NGas
My forecast for 2026 are based on $80/bbl WTI and $4.00 HH NGas
Raymond James Oil & Gas Price forecast as of Jan 6
Raymond James Oil & Gas Price forecast as of Jan 6
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group