U.S. Interior Department entrusted Elizabeth Klein with overseeing offshore energy

Considering the events of 2022, one can notice that a lot had happened in the oil market. Morgan Stanley's Global Commodity Strategist Martijn Rats shared his opinion on what would possibly become major factors of uncertainty for the world’s market of oil this year.

The market’s balance is expected to return in the second quarter of 2023.

As it was said by the strategist, it is likely to remain slightly oversupplied during the first months of the year. This conclusion was made on the basis of assessing barrels of supply and demand. Besides that, the oil market is still affected by a decline of GDP expectations, reducing PMIs and the ongoing monetary tightening by the central bank. But still, Rats suggests that a more positive outlook might emerge sometime near the spring.

Rats stated that the oil market might come to an equilibrium during the second quarter, and then some undersupply might take place in the second half of 2023. According to Rats’s opinion, it’s possible for the price of Brent oil to exceed $100 per barrel by mid-year, though only under the condition of a limited supply buffer.