European Commission Lowers Price Forecast for Brent to $101.8 Per Barrel in 2022
The European Commission on Friday lowered its 2022 Brent crude oil price estimate to $101.8 per barrel from $108.2 in its new economic forecast
MOSCOW (Pakistan Point News / Sputnik - 11th November, 2022) The European Commission on Friday lowered its 2022 Brent crude oil price estimate to $101.8 per barrel from $108.2 in its new economic forecast.
According to the forecast, the price could fall to $85 in 2023 and to $78 per barrel in 2024.
The commission also said that the decline in Brent prices would also push overall prices of liquid fuel down in 2023 and 2024.
"Recent declines in Brent spot prices, sustained in future contracts over the entire forecast horizon, are set to continue pushing liquid fuel inflation down in 2023 and 2024," the commission said.
Brent hit 14-year high of almost $140 per barrel in March right after the outbreak of fighting in Ukraine, which upended global commodities supply in the second quarter. From June onwards, emergency oil reserves released by the United States, combined with recession fears over inflation at 40-year high and continued COVID-19 lockdowns in China, pushed Brent to a 2022 low of beneath $83 in late September.
The global oil price has rebounded since, hovering around $97 in Tuesday's trade.