Raymond James trims its 2023 U.S. rig count forecast to 750 from 813 on lower natural gas prices; lowers PT of some of the oilfield services companies.
U.S. natural gas futures fell by 40% in January.
Mild winter weather, stronger U.S. production growth and the continued delays in the restart of Freeport LNG have resulted in ‘meaningful implied hike’ to summer-ending U.S. natural gas storage levels, says Raymond James.
“We could see shut-ins later this year as storage approaches full levels,” the brokerage says.
“Not expecting the oil markets to fully offset the weakness in the gas markets,” says Raymond James.