Markets

Diverging Oil Price Forecasts: EIA, Banks, and Analysts Weigh in on 2025 and Beyond

Crude oil production from Alaska’s North Slope, long in decline, is set to rebound over the next decade.

The ongoing tension between Canada and the US regarding energy trade, particularly the export of Canadian oil, is poised to have significant impacts on the global oil and gas market.

OPEC+ is set to confront significant challenges as its production cut tapering could result in a substantial surplus in the global oil market by 2026, according to the Saudi think tank KAPSARC.

The announcement of US and UK sanctions on Russian crude on Jan. 10 caused significant price hikes for Middle Eastern grades, with Dubai crude February-March time spreads soaring to $1.35/b on Jan. 13, up from $0.78/b on Jan. 10.

The Bakken shale play in North Dakota, long considered a mature field, may gain a new lease on life due to significant untapped potential in the Three Forks reservoir. Recent research by North Dakota’s Department of Natural Resources estimates the reservoir contains 250MM bbl.

The French energy giant is expanding global operations with new drilling in Suriname and a major project in Iraq. 

Oil prices have experienced notable fluctuations during the first days of Jan. 2025, with concerns over supply glut, technical resistance levels, and geopolitical tensions influencing the market.

The oil market is currently navigating significant challenges that may influence pricing and production strategies.

In a decisive move before exiting office, President Joe Biden enacted a sweeping ban on offshore drilling in over 625MM acres (252.93MM hectares) of US coastal and offshore territories, including sensitive areas like the eastern US Atlantic coast and parts of the Arctic.