Oil: New reduction in prices – At 94 dollars a Brent

Oil: New reduction in prices – At 94 dollars a Brent
Oil: New reduction in prices – At 94 dollars a Brent

Oil prices fell for the third day in a row as expectations for a decline in demand, particularly from China, intensified.

The price of Brent was set at 94 dollars a barreldown 1.6% from yesterday’s close.

According to analysts who spoke to CNBC, prices are expected to move slightly above these levels in the second half of 2022 to decrease to somewhat lower levels in 2023.

However, analysts noted that they have not yet estimated the impact a recession would have on prices.

JP Morgan estimates that the average oil price will average $101 a barrel for the rest of the year and fall to $98 next year.

“While we don’t think the risk of a recession has yet been priced into the price of oil, that risk is growing,” a bank official noted, adding that oil prices tend to fall 30% to 40% in recessions.

According to the same executivethe market impact from the embargo on Russian oil is less than expected. The EU decision provides for a ban on two-thirds of Russian oil imports.

“Some European governments have partially modified the sanctions, due to fears of rising crude prices,” he added.

“Barring some unforeseen event, I still expect Brent to average $108 this year,” said Glenn Wepener, chief executive of First Abu Dhabi Bank, forecasting an average price of $97 for 2023.

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The article is in Greek

Tags: Oil reduction prices dollars Brent

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