A turbulent year is coming to an end in the oil market. Strategists at Commerzbank expect Brent Crude Oil to rise again in 2023 and trade around $95 by the middle of the year.
Significant tightening looms on the oil market
“We are convinced that oil prices will rise again strongly in the first half of next year, as the situation on the oil market is likely to tighten considerably.”
“Demand will exceed supply again from the middle of the year onwards and the already low inventories will fall further. We, therefore, think that the current price weakness is only short-lived and expect a significant price recovery in the coming months. By the middle of the year, a barrel of Brent Oil should cost $95 again.”
“In the unlikely event that prices do not recover, we expect further production cuts by OPEC+. In addition, the US government has announced its intention to replenish strategic reserves at a WTI price around $70. This should counteract a further slide in the WTI price.”