Natural gas liquids (NGLs), a byproduct of oil and gas production, could benefit from global demand and supply disruptions in 2021, paving a path for rising prices as the year wears on, analysts at Raymond James & Associates Inc. said in a new forecast.

NGL prices

“We still think U.S. NGLs have a pretty bullish set-up, similar to U.S. natural gas,” the Raymond James team said. “We continue to believe the relative U.S. NGL supply headwinds and demand strength in 2021-plus are under-appreciated by the market.”

The analysts forecasted U.S. composite NGL average prices for 2021 of $0.67/gallon (about $28/bbl) and $0.64 for 2022 ($27/bbl). They noted that this reflects nearly 10% upside to the recent U.S. composite barrel NGL strip price average for 2021-22 of just over $0.60/gallon...