The average cost of a barrel of oil in 2023 will be about $100. However, the market will fluctuate strongly from any, even insignificant, change in the balance of power on the world stage, according to a report of one of the world’s largest investment banks - Bank of America, Report informs.
An unstable balance will be established in the market, which any major player can easily break, the report says.
Any of the parties, be it OPEC, the US, China or Russia, will feel constraint in their actions.
Additional uncertainty, according to analysts, will be associated with the emerging recession in the global economy.
Regarding the results of 2022, it is noted that for the oil market it ends almost at the same positions as it began, despite all the events that should have led to a turning point in this sector of raw materials production. The cost of a barrel of Brent oil, which traded above $120 in the summer, is now back in the $76-77 range.
In addition to the tension in geopolitics and sanctions games like the oil cap on raw materials from Russia, the global market will feel the consequences of the problems accumulated since the 2020 coronavirus pandemic, bank analysts say.