In the view of ING strategists, oil prices still have room to rise.
The oil market will continue to tighten
We think there is still room for the market to go higher. Our financial balance suggests that the oil market will continue to tighten as we move into the second half of the year, with a deficit in the order of 2MMbbls/d.
We have kept our forecasts for the rest of the year unchanged. We continue to expect Brent ICE to average $86/bbl in Q3 2023 and $92/bbl in curt23.
Our balance sheet shows that the market will remain in deficit in 2024. However, this deficit is heavily skewed towards the second half of 2024. In fact, we see a small surplus in the first quarter of 2024, which suggests that prices could fall back to early next year, before going back up.
Source: Fx Street
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