Jefferies analyst Jonathan Wolff has updated the firm’s outlook for oil & gas prices and adjusted its ratings on several E&P stocks in the space.

In terms of gas, Jefferies has dialed back its price forecast by $0.50 for both 2016 and 2017 to $3.00 and $3.50, respectively. However, the firm maintains its long-term above-consensus bullish forecast of $4.00 for gas prices beyond 2017.

When it comes to oil prices, Jefferies is not as bullish. “OPEC is producing flat out into a market that is overwhelmed by over 1 MM b/d; already decelerating demand growth could further decay with slowing economic activity; and OECD inventories that are already at record levels are likely to expand through at least the middle of the year,” Wolff explains.

Related Link: Deutsche Bank Says $55 Oil Predicted Weeks Ago Now Seems Unreasonable

Jefferies is now calling for Brent prices of $43/bbl in 2016, $57.75/bbl in 2017 and $71.75/bbl in 2018.

Based on the updated outlook, the firm has downgraded EQT Corporation (NYSE: EQT) and Concho Resources Inc (NYSE: CXO) from Buy to Hold and upgraded RSP Permian Inc (NYSE: RSPP) from Hold to Buy.

Disclosure: the author holds no position in the stocks mentioned.