RBC Capital Markets updates price forecasts for crude oil, natural gas as market continues to assess the impact of OPEC+ surprise production target cut, U.S. bank failures and central bank tightening.
Cuts Brent 2023 price forecast to $88.84/bbl from $95.56/bbl; WTI 2023 forecast to $84.45/bbl from $92.06/bbl.
RBC says while China’s recovery post COVID remains in focus, recessionary fears loom in the background as commodity markets await further signals surrounding global demand strength.
Lowers Henry Hub natural gas outlook to $2.67/mmBtu and $3.75/mmBtu in 2023 and 2024 respectively, driven largely by the impact of higher production on storage balances.
RBC notes investor sentiment remains fairly bearish in the European natural gas market “given recent tailwinds of mild weather, demand destruction and ample storage.”
Lowers overall NGL outlook in connection with a lower crude and natural gas forecast.
Several brokerages have updated crude price forecast following OPEC+ decision.