# Economic headwinds set to push oil below $100 in 2023: Reuters Poll Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-30 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Experts forecast Brent oil staying above $100 in 2022 amid Meta Description: Discover expert predictions: Brent oil prices to stay above $100 amidst EU ban on Russian oil. Economic concerns set to lower prices in 2023. URL: https://financedigest.com/economic-headwinds-set-to-push-oil-below-100-in-2023-reuters-pollhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-30t111154z2lynxmpeiat0izrtroptp4global-oil-1736814792433-compressed.jpg) By Seher Dareen (Reuters) – Brent oil prices will hold above the $100 level for the rest of 2022 as an impending EU ban on Russian oil sparks uncertainty over supply, but will tick lower next year as economic concerns prevail, a Reuters poll showed on Wednesday. A survey of 38 economists and analysts forecast benchmark Brent crude would average $100.50 a barrel this year, and $95.56 in 2023, slightly lower than October’s $101.10 and $95.74 consensus, respectively. U.S. crude was forecast to average $95.47 a barrel in 2022 and $87.40 [next year](https://www.financedigest.com/eu-could-face-gas-shortage-next-year-iea-warns.html "EU could face gas shortage next year, IEA warns"). Brent traded around $84 a barrel on Wednesday, having shed over 15% [since early](https://www.financedigest.com/first-quarter-dash-for-cash-largest-since-early-2020-bofa.html "First quarter ‘dash for cash’ largest since early 2020 -BofA") November, dragged down by concerns over demand from top consumer China as it grapples with COVID lockdowns and protests. The [oil market](https://www.financedigest.com/the-edible-oils-market-to-grow-on-an-innovation-revealing-spree.html "The Edible Oils Market To Grow On An Innovation Revealing Spree") faces three major questions, said Frank Schallenberger, head of commodity research at LBBW. What happens to [Russian supply](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") when the EU ban becomes effective? How much will demand [growth go down because of weaker economic](https://www.financedigest.com/addressing-the-credit-gap-to-unlock-economic-growth-in-africa.html "Addressing the credit gap to unlock economic growth in Africa") perspectives? And how fast will OPEC+ lower [oil output?”](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") The EU ban, on Russian [oil is set](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") to kick in on Dec. 5 along with a plan by G7 nations to enforce a low [price for Russian oil](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") sales. But with the overall plan still being [debated by EU leaders](https://www.financedigest.com/young-leaders-forum-debating-what-successful-leadership-looks-like-in-the-digital-age.html "Young Leaders Forum, debating what successful leadership looks like in the digital age"), analysts were divided on its likely impact, and forecast a resultant supply shortfall of anywhere between 500,000 barrels per day (bpd) to 2 million bpd, with some saying Russia could find alternative routes to move its crude. The EU ban will mean that an uneasy balance will characterise the market from the first quarter, which will be supportive of [prices in the 80s or even higher,”](https://www.financedigest.com/vhs-tapes-selling-for-46000-higher-than-original-price.html "VHS tapes selling for 46,000% higher than original price") said Matthew Sherwood, lead commodities analyst at EIU. Most market watchers agreed that the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, would keep to current [output cut levels on Dec](https://www.financedigest.com/spanish-manufacturing-output-down-for-6th-straight-month-in-dec-pmi.html "Spanish manufacturing output down for 6th straight month in Dec -PMI"). 4, although additional reductions could be considered. A small number of respondents predicted that the [oil market](https://www.financedigest.com/the-peanut-oil-market-to-simulate-on-a-stupendous-note.html "The Peanut Oil Market To Simulate On A Stupendous Note") could be more balanced in the second half of 2023. [Demand was seen growing by 1.8-2.1 million bpd in 2022 and by 1-2 million bpd next year](https://www.financedigest.com/heathrow-airport-says-return-to-pre-pandemic-demand-years-away.html "Heathrow Airport says return to pre-pandemic demand years away"), led by Asia. But while prices will moderate in 2023 because of an economic slowdown, “we don’t expect oil prices to fall off the cliff as supplies are tight and [OPEC+ has pre-empted with additional voluntary production cuts](https://www.financedigest.com/dollar-skids-after-soft-u-s-economic-data-impact-of-opec-cuts-fades.html "Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades"), and some Russian oil production will also be impacted by the EU ban,” said DBS Bank lead energy analyst Suvro Sarkar. (Reporting by Seher Dareen in Bengaluru; editing by Arpan Varghese, Noah Browning and Barbara Lewis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---