Economists at Danske Bank expect Brent Oil prices to ease moderately towards 2023. However, the black gold is set to remain elevated in the near-term.

Tight supply supports spot despite rising growth risks

“While looming demand slowdown points towards easing commodity prices in 2023, the limited spare capacity in global markets could support the current steep backwardation and high spot prices in the near-term.”

“We continue to forecast Brent Oil at $120/bbl in Q3, $100/bbl in Q4 and $95/bbl in 2023.”

“Potential outcome space remains very wide amid mixed drivers affecting both global demand and supply outlooks.”