BofA Global Research has revised its outlook for the oil and gas sector, highlighting a bullish stance on natural gas while expressing caution on oil. The report, dated January 13, 2025, raises the long-term natural gas price forecast to $4.00 from $3.75, citing tight gas balances in the second half of 2025. "This gas rally still has room," BofA analysts assert, pointing to the potential for Canadian LNG to tighten AECO prices and benefit producers like Tourmaline, which is their top gas pick. Conversely, the report lowers the long-term oil price forecast to $65 from $75, due to a supply overhang with non-OPEC supply growth outpacing global demand. BofA notes, "Non-OPEC supply growth (1.5mmbd) outweighs global demand growth (1.1mmbd)," suggesting a cautious approach to oil investments. The report also highlights geopolitical factors as potential disruptors to oil market balances, emphasizing the need for strategic positioning in the evolving energy landscape.