Brent Oil should again propel into $100 territory in the latter part of the year – TDS
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Brent has dropped just below $80/b territory recently. Strategists at TD Securities expect the global benchmark crude to trade at $100/b in the latter part of 2023.
“The prospects for crude oil should materially improve as the New Year matures. Once China normalizes post-COVID, the Middle Kingdom’s consumption should jump by as much as one million b/d over the next six months from recent lows, with demand increasing another 0.5 million b/d by year-end. At the same time, the worst of the demand erosion in the Western world should also end.”
“Supply side will likely help to tighten conditions to support prices. Saudi Arabia and friends may right-size production to match any demand growth decline later in the year. It is possible that OPEC will cut production just as Chinese demand starts to bounce higher. Plus, at the same time, the market will price the Fed tilting toward a more dovish policy, which should attract specs back into the market en masse.”
“We judge that $100/b Brent is within reach in the latter part of 2023.”
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