BAKU, Azerbaijan, September 21. Asian Development Bank (ADB) forecasts global oil prices in 2022 at an average of $106 per barrel, Trend reports via the recent Asian Development Outlook from ADB.
“Oil prices are expected to remain volatile, and prices could swing quickly in either direction as the market continuously reassesses the prospects of demand for fuel slowing because of constrained supply,” the publication said.
According to the bank, Brent crude oil prices in 2023 are expected to average $95 per barrel, the report added.
COVID-19 outbreaks in China and the subsequent pandemic restrictions reduced the country’s oil consumption in the second quarter of 2022. Some restrictions on business activities and mobility are expected to remain in the third quarter of the current year as well.
“Despite the numerous challenges that the global economy faces, the global manufacturing and services [Purchasing Manager’s Indices] PMIs have performed fairly well so far, staying above the 50-point threshold. This, combined with the protracted war in Ukraine, supply constraints, and recovering domestic and international travel as economies continue to reopen, is putting upward pressure on oil prices,” ADB explained.
As the report noted, Brent crude oil spot prices averaged $98.60 per barrel in August, 9.5 percent lower month-on-month, but 40.8 percent higher year-on-year.
“Crude oil prices rose sharply in the first half of June, reaching their highest level since March, as oil demand forecasts improved amid tight global oil supply. But crude oil prices have since fallen as the macroeconomic outlook deteriorated and recession fears weighed on market sentiment. The Russian Federation’s strong oil output in the face of sanctions, as well as the EU softening its Russian oil sanctions, also pushed down prices, with Brent crude spot prices falling by more than $30 since reaching a high of $127.18 per barrel in June. In the final week of August, Brent crude traded from $95.71 to $104.17,” the bank said.
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