ING: average Brent oil price will be $104 per barrel next year

Although Brent oil prices fell below the level of $79 per barrel, strategists at Internationale Nederlanden Groep (ING) expect that they will climb to $104 per barrel next year. 

This forecast is driven by a potential tightening of the oil market and significant supply reduction in 2023. A decrease in Russian oil shipments might take place as early as the beginning of next year, thereby adding to the ongoing OPEC+ supply cuts. At the same time, increased supply in the U.S. can’t make up for the resulting commodity shortfall due to stricter capital discipline of American producers.

These factors altogether allow the ING strategists to assume that the price of Brent Crude Oil will rise on average to $104 per barrel in 2023.