Accounting and professional services firm Deloitte Canada is forecasting a modest rise in crude oil prices over the summer months.
In a new report, Deloitte says that it expects lower supply to drain global crude inventories over the next three months, resulting in a slight rise in crude oil prices.
West Texas Intermediate (WTI) crude oil, the American standard, is currently trading at $72 U.S. per barrel, down from a peak of $122 U.S. reached in June 2022.
Brent crude oil, the international benchmark, is now trading at $76.78 U.S. a barrel, also down substantially from a year ago.
Production declines, including Saudi Arabia's one million barrel per day cut, should help to prop up prices despite weakening global demand, says Deloitte Canada in its report.
The firm adds that seasonally high natural gas storage in Europe, combined with lower demand due to warm winter weather, have pushed down natural gas prices and reduced demand for liquified natural gas imports.
Deloitte expects volatile prices for Canadian natural gas seen over the past quarter to continue this summer, exacerbated by higher-than-usual maintenance activities that will temporarily close some pipelines.
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