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Crude oil prices have rallied over the past year owing to steady draws on oil inventories and OPEC’s reluctance to raise its production levels. However, Brent crude futures dipped 69 cents to $84.09 a barrel on November 10 after the U.S. inventory report showed a rise in U.S. crude inventories by 1 million barrels in the most recent week.
The U.S. Energy Information Administration (EIA) expects Brent prices to decline from current levels to an annual average of $72/b in 2022. Furthermore, the organization forecasts that retail gasoline prices will average $3.32/gal in November and then decline to $3.16/gal in December. In contrast, natural gas prices are expected to remain at current levels through year’s end. However, prices are expected to be volatile due to uncertainty around seasonal demand. So, let’s compare CEI and ESTE to see which is fundamentally more stable and better equipped to withstand the potential volatility.
