Global Markets

Forecasts poll suggests gas will lag gains in oil price

The latest GGA poll of analyst forecasts suggests oil prices will stage a strong recovery, but the rebound in gas prices will be modest. If this happens, hub-linked gas pricing will be substantially more attractive than oil indexation The latest GGA poll of analyst forecasts suggests oil prices will stage a strong recovery, but the rebound in gas prices will be modest. If this happens, hub-linked gas pricing will be substantially more attractive than oil indexation.
By Peter Stewart 18 January 2017 0 24377
GGA's poll of price forecasts reveals a clear trend. (Microsoft)

Each month, Interfax Global Gas Analytics takes a poll of price forecasts for Brent crude oil, Henry Hub futures and the UK’s NBP. GGA collates these to create a high-low range for each commodity based on forecasts for the next four quarters and the next three years.

The latest poll covers 2017-2019 and reveals a clear trend (see Forecasts: January 2017). Most forecasters predict oil prices will make a fairly sharp recovery throughout the period, but they expect gas prices to not make nearly as strong a recovery either...