EU members have finally agreed on a watered-down ban on Russian oil and refined product imports. What does this mean for oil prices? In the view of strategists at ING, the move is still relatively supportive for the market, thus, Brent Oil forecasts have been received higher.

Oil prices to trend higher through the course of the year

“A gradual ban on Russian oil means that the strength in the market shouldn’t be as abrupt as it could have been had we seen an immediate ban. Instead, we expect prices to trend higher through the course of the year.”

“We have revised higher our 2H22 ICE Brent forecast from USD109/bbl to USD122/bbl. In addition, we have increased our full-year 2023 forecast from USD93/bbl to USD99/bbl.”

“Clear upside risks to our 2023 forecasts include potential secondary sanctions on Russian oil and US sanctions against Iran staying in place over 2023.”