A difficult period for the oil market lasting throughout the whole year is about to come to an end. As it is supposed by Commerzbank strategists, Brent Crude Oil prices will rise again next year, reaching a level of $95 in the middle of 2023.
The specialists believe that oil prices will surge in the first half of the upcoming year as the situation in the market is expected to get significantly tighter.
According to the strategists, sometime after the first half of 2023, demand will exceed supply, while inventories will begin to dwindle. Due to these prospects, the strategists suggest the current weakness of prices to be temporary, and their recovery is expected to happen in the nearest future. As they noted, the price for one barrel of Brent Oil will again rise to $95 by the middle of the year.
Moreover, the experts think it’s unlikely that the weakness of oil prices will remain for a long time next year. Still, in case it happens, they expect OPEC+ to continue reducing production. Besides that, the U.S. government has recently voiced its plans to refill strategic reserves at a WTI price around $70, which is also aimed at supporting the price of WTI oil.