Market Rebalance Underway After Painful Shock to the System

Austin, TX (July 8, 2020) – Enverus, the leading oil & gas SaaS and data analytics company, has released its latest FundamentalEdge report, Don’t Call It a Comeback, that explores the company’s current, cautiously optimistic view of the oil, natural gas, and NGL markets and where they are headed over the next five years. Six months into a pandemic that brought the global economy to its knees, green shoots have begun to appear, reads the crude oil overview in Enverus’ latest report. In April, more than half of the world’s population was in lockdown. Today, that estimate is closer to 25%. Indicators of traffic congestion in major urban centers around the world also show signs of a partial recovery in personal mobility and economic activity—the key drivers of global oil demand. In addition to supply and demand recovery for crude oil, Enverus’ report also covers impacts to natural gas prices. While natural gas demand losses due to COVID-19 were higher than production declines, upcoming peak demand for winter is expected to produce an impressive bump for the price of natural gas. With prices averaging under $2/MMBtu in 2020, Enverus could see prices increasing above $3.50/MMBtu as soon as winter 2020-2021,… continue reading

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