In its 2026 power outlook report, which was printed lately, Enverus warned that this yr is “prone to be characterised by contrasting market dynamics”.
“Within the first half, however upside danger from growing geopolitical tensions, oil costs are anticipated to say no additional as world inventories swell to ranges not noticed for the reason that Covid-19 period and the U.S. shale worth conflict,” Enverus mentioned within the report.
“International demand within the second half is projected to outpace provide, initiating inventory attracts and supporting a worth restoration,” it added.
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“In opposition to this backdrop, Brent crude is forecast to common $55 per barrel for 2026, reflecting the mixed results of early-year weak spot and late-year stabilization,” the report went on to state.
In a press release posted on Enverus’ web site in November 2025, Al Salazar, Senior Vice President at Enverus subisidiary Enverus Intelligence Analysis (EIR), famous that “the present oil market forecast signifies important oversupply to return as roughly 2.9 billion barrels of crude and petroleum merchandise are saved in OECD tanks right this moment, up from the everyday whole of two.7-2.8 billion”.
“At EIR, our oil worth outlook foresees a possible drop in early 2026 to ranges harking back to the pandemic in 2020 or the OPEC-U.S. shale conflict again in 2015,” Salazar warned in that assertion.
“This sobering forecast has merchants and power consultants reevaluating their oil buying and selling methods,” he added.
“The standard seasonal demand dip from This autumn to Q1, decreasing world oil consumption by about 1-2 million barrels per day, coincides with a gradual provide. This mismatch may exacerbate right this moment’s surplus, presumably pushing Brent crude into the $40-$50 per barrel vary within the first half of the approaching yr,” Salazar highlighted.
In a press release despatched to Rigzone by the Enverus workforce saying the discharge of Enverus’ 2026 power outlook report, Dane Gregoris, managing director at EIR, mentioned, “our work reveals oil costs will reset decrease in 2026 with out signaling long-term shortage”.
“Upstream operators will proceed to push for effectivity positive aspects whereas capital stays extremely selective,” he added.
Henry Hub
In its report, Enverus projected that Henry Hub costs will common $3.80 per million British thermal models (MMBtu) “by the winter months” and $3.60 per MMBtu “in the course of the summer season, earlier than step by step growing to $4.00-$4.50 per MMBtu by the top of the last decade”.
Enverus famous in its report that this outlook “displays a number of structural components anticipated to restrict the sustainability of latest worth power”.
“Though costs on the buying and selling hub surged by about $1.00 per MMBtu in late October, pushed by colder climate forecasts and file LNG export volumes, a number of dynamics level to ongoing market softness,” Enverus added.
“L48 manufacturing stays extremely elastic, with output progress exceeding expectations in response to cost alerts. On the identical time, gas-fired energy era is dropping market share to coal at present elevated worth ranges, indicating demand-side weak spot,” it continued.
“Moreover, weekly storage withdrawals have been lighter than climate patterns would counsel, and the present storage surplus of roughly 150 billion cubic ft versus the five-year common is unlikely to be materially diminished given strong provide and muted demand,” Enverus went on to state.
Within the assertion despatched to Rigzone, Enverus describes itself as “essentially the most trusted energy-dedicated SaaS firm, with a platform constructed to maximise worth from generative AI, providing anytime, wherever entry to analytics and insights”.
“These embody benchmark value and income knowledge sourced from greater than 95 % of U.S. power producers and greater than 40,000 suppliers,” Enverus provides.
Enverus outlined within the assertion that its report pulled from a wide range of merchandise, together with Enverus PRISM, Enverus FOUNDATIONS – Carbon Innovation, Brief‑Time period Grid Analytics & Forecasting Options, Oil & Gasoline Manufacturing Forecast Options (Forecast Analytics), Enverus CORE, and Enverus AI.
To contact the creator, e mail andreas.exarheas@rigzone.com
