A barrel of Brent oil is now trading around $110. In mid-June, the price was still around $125. Commerzbank economists they expect prices to fall towards $95 by the end of 2022.
The oil market between supply risks and demand concerns
“In the short term, the massive release of oil reserves by the main consuming countries will be a relief”.
“Demand prospects remain uncertain. China’s strict “zero covid” strategy continues to threaten to hamper oil demand with new lockdown measures. High energy prices and tighter monetary policy are also expected to leave their mark.”
“The price of a barrel of Brent oil should continue to trade above $100 for now, but will fall again in the second half of the year to $95 by the end of the year.”
Source: Fx Street