DALLAS–Oil prices likely have two strong quarters ahead but, like natural gas, crude is essentially range-bound in the near term, Anthony Yuen, global energy strategist for Citigroup, said Oct. 12 at Oil and Gas Investor’s A&D Strategies & Opportunities Conference.
Citigroup forecast fourth-quarter 2017 Brent prices at $58 per barrel (bbl) and West Texas Intermediate (WTI) at $54—a divide that U.S.-based E&Ps have previously taken advantage of in the global export market. After that, prices will decline, Yuen said.
Additionally, NGL prices will continue to fluctuate greatly due to the tug-of-war between supply and demand, he said.
“NGL is something that we like a lot, but it is a market where you cannot control your own destiny,” he said. NGL pricing varies greatly because they’re dependent on oil and gas fundamentals for supply and while Asian and European fundamentals govern demand.
“It’s not really controlled in the U.S.,” he said. “So that’s why we see a lot of volatility and also how we’ve seen propane prices really shoot up 30% or more in just two months.”
Source: Daily Dose of ShaleDirectories.com News