"Thus, we introduce 2023 average Brent crude oil price forecast at an elevated level of US$85 to US$90 per barrel,” they add.
While 2022 should still represent a reasonably balanced market as OPEC+ looks to boost supplies by around 4 million barrels per day (mmbpd) over the next 10 months, DBS Group Research analysts believe there could be oil price spikes towards US$80 per barrel or higher in late 2022 and beyond.
Factors include demand recovering to pre-pandemic levels, air travel recovering well into 2023 and OPEC spare capacity down to normalised levels, the analysts say.
