New York, First Published Jul 6, 2022, 11:56 AM IST
By 2023, the price of crude oil in the international market may fall to 45 dollars, according to market research firm Citi.
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Citi predicts that crude oil prices will fall to $65 a barrel by the end of 2022 and $45 by 2023. All these are likely to happen under certain conditions.
When prices fall, OPEC, the crude oil producing countries, should not intervene and investment in the crude oil sector should decrease. Based on these possibilities, this price drop is predicted.
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A news agency reported on Citi’s statement:
Russian crude oil exports will remain strong despite falling global exports of fuel products. As global crude oil demand weakens, crude oil prices will fall further.
In the 3rd quarter of 2022 i.e. July to September, Brent crude oil will drop to $99 per barrel. In the 4th quarter i.e. from October to December, the price of crude oil will fall to 85 dollars per barrel.
Overall, Brent crude will fall to $98 a barrel in 2022. By 2023, it will drop to $75 a barrel.
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Citi said about US West Texas Intermediate that “West Texas crude oil prices will average $95 a barrel in 2022 and fall to $72 a barrel in 2023.” Crude oil prices will fall to $94 a barrel in the 3rd quarter of 2022 and $81 a barrel in the 4th quarter,” it said.
Crude oil market has been affected by various factors such as economic slowdown, declining demand, supply constraints and high price volatility.
Last Updated Jul 6, 2022, 11:56 AM IST