{"id":9432,"date":"2024-01-10T11:08:13","date_gmt":"2024-01-10T11:08:13","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=9432"},"modified":"2024-01-10T11:08:13","modified_gmt":"2024-01-10T11:08:13","slug":"oil-and-gas-prices-to-slump-to-2-year-lows-through-2024-deloitte-canada","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/9432\/","title":{"rendered":"Oil and gas prices to slump to 2-year lows through 2024: Deloitte Canada"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0 Oil and gas prices are set to trade at two-year lows through 2024, according to the Deloitte Canada new forecast, giving consumers a potential break on heating and fuel costs.<\/p>\n

Meanwhile, producers in Canada’s energy patch are expected to shrug off a year of lower prices, shielding themselves with cash-heavy balance sheets.<\/p>\n

A new report by Deloitte Canada calls for U.S. benchmark West Texas Intermediate (WTI) crude (CL=F) to average US$72 per barrel this year, thanks to a combination of growing supply and slowing demand. In October, the firm\u2019s 2024 estimate was US$82.40.<\/p>\n

\u201cIt\u2019s been quite a fall, as we saw prices soften a lot through Q4,\u201d Andrew Botterill, Deloitte Canada’s national leader for oil, gas and chemicals, said in an interview. \u201cWe\u2019re certainly looking at a more moderate 2024.”<\/p>\n

As of 5:53AM EST.Market open.<\/p>\n

WTI climbed more than two per cent in early trading on Tuesday, reversing course after a sharp fall to start the week driven by Saudi Arabia\u2019s price cut on exports to Asia.<\/p>\n

Botterill sees a supply-determined year ahead. He says producers made significant investments through 2023 to bring more barrels to market in 2024, when demand is set to rise at only a moderate pace. The situation could spell savings for consumers filling their cars and heating their homes.<\/p>\n

Gasoline prices in Canadian cities continue to trend lower. At the same time, Deloitte Canada estimates Alberta benchmark AECO natural gas prices will average $2.35, far below the $5.75 seen in 2022.<\/p>\n

For Suncor Energy, Cenovus Energy, and their Canadian oil and gas major peers, Botterill expects shrinking budgets to help cushion the impact of lower prices.<\/p>\n

\u201cThey deployed a lot of capital last year and brought volumes to the market. I think we\u2019re going to see them be more moderate this year,\u201d he said. \u201cThey\u2019re very cash-rich. A lot of our Canadian producers did very well through 2023.\u201d<\/p>\n

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