© Archyde.com. Commerzbank expects oil to rise to $95 by mid-2023
Commerzbank expected the oil market to recover in the coming months, following a turbulent year, to reach $95 a barrel by the first half of next year.
And the German bank stated that demand will exceed supply once more from the middle of the year onwards, and that already low stocks will decrease further, according to the “Sky News Arabia” website.
The bank’s strategic analysts said: “We believe that the current price of oil is short-term, and we expect a significant recovery in prices in the coming months, and by the middle of the year it is expected to reach $95 a barrel once more.”
Commerzbank indicated that in the event that prices do not recover, which is not likely, “OPEC +” is expected to make more production cuts.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have boosted production for most of 2022 as demand recovers.
But the group agreed on December 4 to stick to the October plan to cut production by two million barrels per day from November until 2023.
And it witnessed some decline today, amid concerns regarding the increase in cases of Corona virus in China, in addition to concern regarding the global recession, bringing Brent crude to regarding 83.8 a barrel, and WTI to $ 79 a barrel.