Crude oil prices fell below $79/bbl, erasing gains for this year. However, strategists at ING expect Brent Crude Oil to average $104/bbl in 2023.

Tighter oil market

“We believe that Russian supply will fall significantly early next year – in the region of 1.8MMbbls/d year-on-year in the first quarter. This supply loss coupled with continued OPEC+ supply cuts suggests that the oil market will tighten over the course of 2023. US supply growth will not be able to fill the gap, with US producers showing a lot more capital discipline.” 

“We expect ICE Brent to average $104/bbl next year.”