Page 21 - ISQ UK_October 2017

JANUARY 2022

Spot WTI Oil Price

160
140

120

100

80

60

40

20
0
'00 '03 '06 '09 '12 '15 '18 '21

WTI Crude Oil Price ($/bbl)
Source: Factset, as of 12/17/2021
Finally, at a time of heightened inflationary concerns, macroeco- geopolitics surrounding gas supply from Russia. In response to
nomic question marks are also part of the backdrop. All that being unhappiness in Germany about the politically controversial Nord
said, we forecast that West Texas Intermediate (WTI) crude will Stream 2 pipeline, Russia retaliated by curtailing exports. How-
average $75/Bbl in 2022, ending the year at $80/Bbl. Brent crude, ever, the US market was also very strong, for purely economic
the global benchmark, should remain a few dollars above WTI. reasons: lack of investment in new supply at a time of strong
demand from the post-crisis industrial recovery. In 2022, we envi-
Natural gas is fundamentally regional in nature: prices on different sion the domestic Henry Hub benchmark averaging $4.50/Mcf.
continents can follow different patterns. In 2021, in fact, Europe
was the standout for escalation in gas prices, amid the complex

15
Electric Vehicle Adoption Curve
Electric Vehicle Sales (Millions) 10 5

0
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E

China Europe US All Other

Source: Raymond James Equity Research

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