Fitch downgrades Brent and WTI oil price forecast for 2023 – Kommersant
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The international rating agency Fitch Ratings has lowered its Brent oil price forecast for 2023. From press release It follows that this year the price will be $80 per barrel against the previous forecast of $85. Fitch’s expectations for 2024 remained at $75 per barrel.
The forecasts for the cost of WTI oil for 2023 have also decreased: from $80 per barrel to $75. Expectations for 2024 remained at $70 per barrel. As the agency explained, the decrease in the forecast for the current year is due to “weak short-term demand” and a possible slowdown in global economic growth. In addition, Fitch pointed to strong oil supplies, including Russian exports to Asia.
Meanwhile, Fitch raised its long-term forecasts for Brent and WTI. The agency expects that in 2025 the price of Brent will be $70 per barrel against the previous forecast of $65, in 2026 – $65 against $53 per barrel. The price forecast for WTI was raised from $60 to $65 per barrel for 2025, from $50 to $60 per barrel for 2026.
Fitch also lowered its European gas price forecasts for the TTF index for 2023 and 2024 to $12 and $10 per thousand cubic feet from $20. The agency attributed the change in expectations to “sufficient LNG supplies”, reduced demand and high storage levels. Forecasts for 2025 and 2026 remained at $10 and $5 per thousand cubic feet.
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