© Reuters. Commerzbank expects oil to rise to $95 by mid-2023
Commerzbank expected the oil market to recover in the coming months, after a turbulent year, to reach $95 a barrel by the first half of next year.
And the German bank said demand would again outstrip supply mid-year onwards, and already scarce inventories would decline further, according to Sky News Arabia.
The bank’s strategic analysts said, “We believe the current oil price is short-term and expect a significant price recovery in the coming months, and by mid-year it should hit $95 a barrel again.”
Commerzbank indicated that in case prices do not recover, which is not likely, “OPEC+” should make further production cuts.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, ramped up production for most of 2022 as demand recovered.
But on Dec. 4, the group agreed to stick to its October plan to cut production by two million barrels a day from November through 2023.
And today saw some decline amid concerns over rising coronavirus cases in China, plus concern over the global recession, pushing Brent crude to around 83.8 a barrel and WTI to $79 a barrel .
