Global oil demand slows, prices to drop further - Capital Economics

Economy Materials 14 May 2022 10:05 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, May 14. The price for Brent Crude is expected to reach $110 per barrel in the second quarter of 2022 with further decline prospects, Trend reports via Capital Economics, UK-based research and consulting company.

Latest market developments on the back EU’s struggle to embargo Russian oil import have affected oil prices long-term.

As of the latest data (May 13, 2022), the price for Brent Crude was $110 per barrel, which is a decrease, compared to $112 a month ago (April 15, 2022), the report said.

According to Capital Economics, the price for Brent Crude will further drop to $105 per barrel in the third quarter of 2022, and $100 per barrel - in the fourth quarter of the current year. The company forecasts the price of Brent Crude at $95 per barrel in 2023.

Meanwhile, Capital Economics also revised its forecast for global oil demand downwards, as weekly US stock data showed low indicators. “We also expect slower growth in oil demand this year, but we think that supply risks will act as a floor under prices for some time yet”.


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