Analysts wonder if oil will reach $100 per barrel in 2023

Analyst at the Australian investment bank Macquarie Group Vikas Dwivedi believes that oil will not reach the level of $100 per barrel in 2023. According to analysts’ estimates, the market will experience a serious surplus during the first three quarters of the year. For the price of oil to reach $100 per barrel, there should be significant supply disruptions from major exporters of this energy source, including Russia, Nigeria, Angola, etc. Besides that, China should completely remove its Covid-19 restrictions by the first or second quarter of the year. According to Dwivedi, only in this case oil prices might reach the assumed level.

Gladney Darroh, the President and Cofounder of Piper-Morgan Associates, admits that the price of oil might reach $100 per barrel in 2023. However, he mentioned similar conditions for the implementation of this forecast. First, there should be serious supply disruptions that will persist for a long time. Second, the global economy should recover beyond current expectations.

James Davis, the Head of Upstream Oil at FGE, projects the price of oil around $72 per barrel. At the same time, he considers it possible for the price to rise higher, up to $100.