West Texas Intermediate (WTI) is seen trading at $105 and $95 in 2022 and 2023, respectively. Still, risks are skewed towards the upside, strategists at the Bank of Montreal note.

Risks still skewed to the upside

“We remain of the view that the oil market will remain tight in the foreseeable future and, in turn, crude oil prices will remain elevated.”

“We have revised up our annual forecasts for benchmark WTI crude to $105/bbl in 2022 and $95 in 2023 (from $100 and $85). Nonetheless, with global supply appearing to be under greater threat than demand at the moment, we think that pricing risks may be still skewed towards the upside.”