Brent Oil has fallen below $110 after pushing just shy of $140 at the beginning of the week. Strategists at Commerzbank have revised up their forecast and now expect a Brent Brent price of over $100 in the second quarter.
Brent should fall back to $90 by year-end
“We have upwardly revised our oil price forecasts and now envisage a Brent price of over $100 in the second quarter (previously $85). This is because Russia is likely to produce less oil as a result of the sanctions and the voluntary boycott of many buyers, which will tighten supply.”
“Brent should fall back to $90 by year’s end (previously $80), however. After all, the high price level is likely to have a dampening effect on demand and serve as an incentive to expand oil production.”