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Asian Development Bank cuts oil price forecast

19 July 2023 10:56 (UTC +04:00)

Asian Development Bank (ADB) revised down its forecast for oil price, APA-Economics reports citing the Bank.

ADB revised down Brent crude forecasts to $80/barrel for 2023 ($8 decrease) and $84/barrel for 2024 ($6 decrease). The Bank noted that June, Brent crude stood at $75.68/barrel—down by 14.4% from a recent peak in April and by 40.5% from a peak in June 2022.

Despite expected market tightening under such factors as higher seasonal demand for gasoline, broadly stronger demand in Asia, and production cuts in the bloc led by the Organization of the Petroleum Exporting Countries (OPEC+), prices were constrained by subdued industrial activity, high-interest rates, and unexpectedly high oil exports from the Russian Federation, the report says.

In general, ADB believes that while crude oil prices are expected to climb in the remainder of this year, steep price drops in April and May will depress the average price. Crude oil prices are expected to recover more slowly in 2024.