During 2023, currency prices for North Sea Brent oil will likely stabilize at $70-75 per barrel. Currently, there are no prerequisites for both a significant increase in demand and a significant increase in supply in the global commodity market, opens The words of the consultant of the company “Vygon Consulting” Ivan Timonin newspaper “Izvestia”.
“The market is currently near equilibrium: Despite the limited potential for demand growth, there are no prerequisites for a tangible excess supply resulting from the OPEC+ member countries’ decision to cut production. In the short term – at least until the end of the year – the most likely scenario under current conditions is to set prices to the current level – in the range of $70-$75 per Brent barrel,” Timonin explained.
According to him, price dynamics can change in several scenarios. Brent’s currency value will start to rise as oil production is cut further by OPEC+ countries and production growth in North America slows. However, to date, none of these scenarios seem likely.
4 May, Deputy Prime Minister Alexander Novak declarationRussia is currently reducing its daily oil production by 500 thousand barrels compared to February. At the same time, follow-up will be made according to independent sources.