The price of oil has been pressured by demand concerns and expectations of an oversupplied market. Commerzbank economists analyze the outlook for Brent.
Oversupply unlikely to materialize
With Saudi Arabia likely to maintain its voluntary production cut beyond the end of the year, only a modest supply surplus is expected in the oil market early next year.
A supply deficit is even seen for the second half of 2024 due to increased demand, which would allow Saudi Arabia to reverse the production cut.
Overall, the price of Brent crude oil is expected to recover to $85 per barrel in the first quarter of 2024 and to continue rising to $90 per barrel by the end of 2024.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
