Growing concerns that significant economies will enter recession are causing oil analysts to revise their price forecasts downward.
Morgan Stanley and UBS Group cut their short-term price forecasts amid a worsening outlook.
Morgan Stanley cut its Brent oil price forecast for the third quarter by $12 to $98 in anticipation of a sharp slowdown in demand and to $95 for the fourth quarter from $100. Agency analysts predicted that the decline in Russia’s oil exports would continue.
UBS Group also cut its Brent oil forecast by $15 to $110 due to the lockdowns in China. Analysts Giovanni Staunovo stated that quarantines in China would slow demand in the near term.
It was stated that Russia’s exports are more resilient than expected, and oil flows to some countries, such as Italy, are in high volume.
It was stated that Brent oil could rise to 125 dollars per barrel in September 2023.
On the other hand, Goldman Sachs increased its price forecast for 2023 to $125, with a ceiling price set for oil exports from Russia on September 2.
