O Petroleum could drop to $65 a barrel by the end of this year and then to $45 a barrel by the end of 2023 if a recession hits that hurts demand, warned the Citigroup.
This perspective is based on the absence of any intervention by the producers of the OPEC+ and a decline in production investment, analysts at the bank, including Francesco Martoccia and Ed Morse, said in a report.
Brent, Petroleum global benchmark, it was trading close to $107 a barrel on Tuesday.
Oil soared this year after the invasion of Ukraineand banks are now trying trace your trajectory in 2023 as monetary authorities raise interest rates and recession risks grow.
The perspective of citi compared the current energy market with the crises of the 1970s. Currently, the bank’s economists do not expect USA plunge into recession.
“Historical evidence suggests that oil demand turns negative only in the worst global recessions,” analysts said. citi. “But oil prices fall in every recession to close to their marginal cost.”
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
