Moody’s reports that, in 2023, oil prices will remain volatile, but supported by supply shortages.
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Moody’s: Oil prices will remain volatile, but supported by supply shortages in 2023
agency reported Moody’s (Moody’s) for the credit rating, in an article published yesterday, Monday, that oil prices will remain volatile, but supported by a shortage of supplies, in 2023.
Moody’s, an agency that provides international financial research on bonds issued by commercial and government entities, said that average oil prices this year will remain below $100 a barrel, which was the average of last year’s global benchmark Brent crude.
She added that the course of oil prices this year is still hazy, and depends on economic results in major economies.
It indicated that the decline in oil prices since June indicates a decline in market expectations for oil demand growth in light of high recession risks in the United States and Europe.
It stated that this decline indicates a decline in market expectations for oil demand growth, in light of a decline in Chinese demand, in the near term.
The decline in oil demand in China, which is the largest importer of crude oil in the world, is due to the strict protocols that China took to combat the Corona virus after the increase in cases of infection.
Moody’s confirmed that if “economic weakness” persists or worsens in China, Europe or the United States, oil prices may fall below current levels of $80 a barrel.
The New York Times had earlier quoted economists as saying that the economies of The European Union is entering recession In 2023, due to high inflation and shortage of energy resources in Europe.
In turn, the agency “Bloomberg” revealed signs of occurrence Great economic recession in the United States of AmericaAnd she indicated that a number of indications of his approach had begun.
