Brent Oil to hit $90 at the end of the quarter – Commerzbank

The Oil price has been rising significantly since the end of June. Economists at Commerzbank have revised their forecast for Brent Oil.

Brent Oil seen at $85 by year-end

We have raised our price forecast for Brent at the end of the quarter to $90 per barrel (previously $80). 

At the end of the year, we continue to expect $85. This is because we expect Saudi Arabia to gradually phase out its voluntary production cuts in the fourth quarter and thus bring additional supply to the market. In addition, we expect the US economy to experience a mild recession in the first half of 2024, which should dampen Oil demand. In China, too, demand growth is likely to slow down noticeably after the strong increase in the first half of 2023.