Oil prices to return to the level of $100 per barrel in 2023

Oil is likely to hit $100 per barrel in 2023. This is reported by Eric Nuttall, senior portfolio manager at Ninepoint Partners LP, in his interview with the Financial Post.

The coordinated SPR releases by several governments, China’s reopening and sanctions on Russia’s oil and gas are going to push the cost of black gold higher next year.

But Eric Nuttall is not the only person with bullish sentiment on fuel.

Last week, the Bank of America (BofA) predicted that the price of Brent may exceed $90 per barrel. In fact, a possible monetary easing by the U.S. Federal Reserve (Fed), as well as renewed economic growth in China, might be the key drivers of rising costs. 

Brent prices are likely to hit $100 per barrel in 2023, according to the Bank of America. This growth could be triggered by Chinese oil demand recovery, along with a drop in Russian supplies.

The BofA's outlook for black gold is largely dependent on steady demand growth in China and India. Thus, any delays in resuming operations in Asia may have a direct impact on the price trajectory. Officials also noted that the subsequent economic recovery could be very challenging.