The demand-supply imbalance would push crude oil prices higher, propelling the energy industry’s prospects. Thus, top-performing energy equities ETFs First Trust Natural Gas ETF (FCG – Get Rating), iShares U.S. Oil & Gas Exploration & Production ETF (IEO – Get Rating), and iShares Global Energy ETF (IXC – Get Rating) could be ideal investments for sustainable returns.
World oil demand will rise by 2.44 million barrels per day (bpd) to average 102.1 million bpd in 2023, The Organization of the Petroleum Exporting Countries (OPEC) said in its Monthly Oil Market Report (MOMR). Developing economies, led by China, will account for most of this year’s demand growth. Further, global oil demand is expected to grow by 2.25 million bpd in 2024.
Moreover, U.S. natural gas output and demand will soar to record highs in 2023, the U.S. Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO). EIA forecasts dry gas production to rise to 103.72 billion cubic feet per day (bcfd) in 2023 and 105.13 bcfd next year, compared to 99.60 bcfd last year.
Amid robust demand worldwide and constrained supplies, crude oil prices have remained higher for most of 2023. The Brent crude oil price averaged $94 per barrel in September, up $8/b from August and $19/b higher than in June.
In September, oil prices rose to a 9-month high on worries about constrained supplies after major global crude exporters Saudi Arabia and Russia extended their voluntary oil production cuts through the end of December 2023 and lowered U.S. commercial crude oil inventories.
EIA expects oil prices to rise in the coming months, reflecting its expectations of tightening balances in world oil markets. Also, fears of a broader conflict in the Middle East could disrupt oil supplies, putting upward pressure on prices. EIA forecasts the Brent crude oil spot price to average nearly $91/b in the fourth quarter of 2023.
In addition, the agency projects the Brent spot price next year to average $94.91/b, $6.69/b higher than in the prior month’s STEO.
According to Goldman Sach’s chief commodities strategist Jeff Currie, oil prices could tread as high as $100 per barrel in 2024. Currie said that a supply-demand imbalance in the oil market will likely worsen over the next year and push prices higher.
Given the industry tailwinds, it’s time to…
Continue reading at STOCKNEWS.com
