Fitch downgrades Brent oil price forecast for 2023

Fitch downgrades Brent oil price forecast for 2023

According to the agency's press release, Fitch Ratings has downgraded its forecast for the cost of Brent crude oil for 2023, while maintaining its expectations for 2024.

Fitch forecasts that the price of Brent crude oil will be USD 80 per barrel this year against a March forecast of USD 85. For 2024, the forecast was maintained at USD 75 per barrel.

"The lower oil price forecast for 2023 reflects weaker near-term demand and concerns about a global economic slowdown, and as strong oil supplies as before, especially from Russia, which has redirected its exports to Asia", — the report says.

The agency's expectations for the price of WTI crude oil were also lowered for 2023, to USD 75 per barrel from USD 80. Next year, Fitch forecasts the WTI price at USD 70 per barrel, as previously expected.

Longer-term price forecasts for both oil grades have been raised. Thus, the cost of Brent in 2025 is expected at USD 70 per barrel against USD 65, in 2026 - at USD 65 per barrel against USD 53 earlier. The forecast for WTI prices was raised for 2025 to USD 65 per barrel from USD 60 earlier, for 2026 - from USD 50 to USD 60 in March.