Oil and Natural Gas: Current Challenges Unlikely to Phase Out Long-Term Bulls
Long-term energy bulls have no reason to frown, even against the backdrop of the recent halt in oil price rises.
On top of last quarter's rally, the latest projections from Wood Mackenzie indicate that global investments in exploring new resources in the oil industry will reach approximately $21 billion a year over the next five years, marking a 5% year-on-year increase.
The upward momentum is also expected to continue on the demand front. The International Energy Agency predicts a record demand of 102.2 million barrels per day for this year, with further improvements anticipated in 2024.
While conservative estimates suggest a potential shift to a downward trend towards the end of the decade due to the growth of renewable energy sources (RES) and electromobility, the march of demand-side influence on oil prices, including Brent and WTI, which was expected to culminate in reaching $100 per barrel, has so far been halted.
But with high expectations for the next few years, let's take a look at the current state of the prices of oil and natural gas to assess the best entry point for those looking to acquire positions in the two leading fossil fuel industries.
In the context of global commodity pricing, a pivotal factor remains the US dollar, which continues to dominate trade settlements.
The Federal Reserve's stance remains consistent, emphasizing the maintenance of relatively high interest rates for an extended period, with the possibility of further rate hikes. Currently, the likelihood of another rate hike in November stands at 29.2%, according to our Fed Rate Monitor Tool.
The strong dollar, coupled with output cuts from Saudi Arabia and Russia, has played a pivotal role in bolstering buyers.
The next critical data
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