The energy market is poised for significant changes in 2025, with forecasts suggesting West Texas Intermediate (WTI) crude oil prices will average USD $74.00 per barrel and Henry Hub natural gas prices at USD $4.00 per million British thermal units (MMBtu) [22197733]. This outlook comes as the LNG Canada project enhances the country's LNG capacity, positioning Canada as a key player in the global LNG market [22197733].
Despite the positive developments, the energy sector faces challenges from an uneven economic recovery, which is expected to affect overall energy demand. Additionally, potential shifts in U.S. trade policies under a Trump-led administration could further complicate market dynamics [22197733]. Geopolitical risks, particularly tensions in the Middle East and sanctions on countries like Iran and Venezuela, are also likely to impact energy prices and availability [22197733].
In the U.S., natural gas prices are projected to average $3.20 per MMBtu, while AECO natural gas prices in Canada are expected to be around $2.05 per MMBtu [22197733]. The anticipated TMX project is expected to narrow the differential between Western Canadian Select (WCS) and WTI prices, which could provide additional support for Canadian oil producers [22197733].
Furthermore, GLJ has expanded its forecasts to include lithium prices, reflecting the growing importance of this commodity in the energy transition [22197733]. As the energy landscape evolves, market participants will need to navigate these complexities to capitalize on emerging opportunities while mitigating risks associated with geopolitical uncertainties and fluctuating demand [22197733].