Optimistic EOY Oil Prices Predictions for 2023

by | Jun 30, 2023 | Crude, News, Oil Prices

Discover the positive outlook for eoy oil prices in 2023 and its impact on global markets. Explore the key factors driving optimism in the industry.

EOY Oil Prices Predictions: Executives from 151 oil and gas firms have predicted where the West Texas Intermediate (WTI) oil price will end up this year as part of the latest Dallas Fed Energy Survey.

When asked in the second quarter survey what they expected the WTI crude oil price to be at the end of 2023, the average survey response was $77.48 per barrel. The low forecast in the survey came in at $60 per barrel, while the high forecast came in at $100 per barrel. The price of WTI during the survey was $69.89 per barrel, the survey highlighted.

In the previous first quarter Dallas Fed Energy Survey, which was released back in April, the average survey response to the same question, from executives from 145 oil and gas firms, was $79.64 per barrel. The low forecast in that survey was $50 per barrel and the high forecast came in at $160 per barrel. The WTI price during that survey was $68.51 per barrel, the first quarter Dallas Fed Energy Survey pointed out.

In its latest short term energy outlook (STEO), which was released in June, the U.S. Energy Information Administration (EIA) projected that the West Texas Intermediate spot price would average $74.60 per barrel this year. The EIA projected in this STEO that the WTI spot average would come in at $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 highlighted.

“We estimate West Texas Intermediate crude oil prices will average $83 per barrel over the three years from 2022 to 2024, while annual growth in U.S. crude oil production over the same period will average 0.4 million barrels per day,” the EIA said in its latest STEO.

“That compares to average crude oil production growth of 1.1 million barrels per day during the three-year period from 2017 to 2019, when the WTI price averaged only $58 per barrel,” the EIA added.

“The changing response to crude oil prices by U.S. producers may reflect a combination of the use of capital to increase dividends and repurchase shares instead of investing in new production, the effects of tighter labor markets and higher costs, and increased pressure on oilfield supply chains,” the EIA continued.

The EIA’s previous STEO, which was released in May, projected that the WTI spot price would average $73.62 per barrel in 2023. In this STEO, the WTI spot average was projected to come in at $72.50 per barrel in the second quarter, and $73 per 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 come in at $88 per barrel in 2023. The organization expects the commodity to average $85 per barrel in the third quarter of this year and $91 per barrel in the fourth quarter. In a separate report sent to Rigzone back 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 average $75 per barrel in the second quarter, $77.50 per barrel in the third quarter, and $73 per barrel in the fourth quarter.

In a report sent to Rigzone back in May, BMI, a Fitch Solutions company, predicted that the WTI crude price would come in at $81 per barrel in 2023. Also in May, BofA Global Research highlighted in a report on U.S. oil and gas that it had a base case of $75 per barrel WTI.

At the time of writing, the WTI price is trading at $69.05 per barrel. The commodity’s highest close in 2023, so far, came on January 26, at $87.47 per barrel, and its lowest close in 2023, so far, came on March 17, at $66.74 per barrel.

 

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