Pundits See Rising Prices But Recession Risk Looms

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.
ss769868611-Oil Proce Dollar

Tension between physical supply shortages and recession fears could send oil prices on a roller coaster for the rest of this year. A survey of price forecasts shows pundits believe oil prices will climb from current levels through the third quarter before dipping in the fourth. Energy Intelligence sees a similar trend, with Brent forecast to trade at $108.50 in the third quarter but fall to $93 in the fourth. Near term, supply worries on multiple fronts are driving bullish sentiment. Western efforts to isolate Russia following its invasion of Ukraine present the biggest upside risk. But recession worries loom by year's end. The EU has pledged to halt purchases of seaborne Russian crude by December and products by February. The US and Canada have already stopped their much smaller imports. Refiners are now scrambling to find replacement barrels, providing support for prices. Traders and brokers say an EU ban on insuring and financing tankers carrying Russian oil will further — albeit artificially — tighten the market. Such transport bottlenecks could severely limit Russia’s ability to export some 3 million barrels per day of crude and 2 million b/d of products.

Oil Forecasts, Oil Prices
Wanda Ad #2 (article footer)
The long-term future is net zero, but the European majors are figuring out the best path to get there as oil demand remains resilient.
Thu, Mar 23, 2023
News that airlines were having to tanker fuel into French airports sent jet cargo premiums soaring and threatened to derail industry preparations for summer.
Fri, Mar 24, 2023
A financial environment rattled by bank factors is weighing on oil markets and could squeeze smaller corporates.
Thu, Mar 23, 2023