High oil price volatility will remain in 2023 as well

Ewa Manthey, analyst at Internationale Nederlanden Groep (ING), noted that this year has been quite challenging for commodity markets. The fall in supply and problems with shipments pushed up prices and volatility. Manthey believes the following year to be characterized the same, by higher volatility and uncertainty. 

As director at consultancy JTD Energy Services John Driscoll added, the easing of China’s Covid-19 restrictions was expected to raise oil demand. However, the lifting was followed by a rapid surge in Covid cases, which caused fears of further deterioration of the epidemiological situation.

Also, there was a slowdown in the U.S. production growth, despite rising oil prices. A survey conducted by the Federal Reserve Bank of Dallas showed that the growth was influenced by high inflation, problems in supply chains and general economic uncertainty.